This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 127 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 127 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Cars, TVs, computers belong in which part of the GDP formula?GDP = C+I+G+(X-M) A) Consumption Expenditures (Consumer Spending). B) Net Imports (Imports-Exports). C) Government Expenditures (Gov't Spending). D) Investment Expenditures (Business Spending). Show Answer Correct Answer: A) Consumption Expenditures (Consumer Spending). 2. Stage of Production:1. Lemon grower sell lemons to lemonade producers for $ 10, 0002. Lemonade producer sell Lemonade to wholesaler for $ 15, 000Lemonade wholesalers sell to retailers (grocery Stores) for $ 20, 000Lemonade Retailers sell to consumer for $ 22, 000What is the value-added by the retailer? A) $ 5, 000. B) $ 10, 000. C) $ 22, 000. D) $ 2, 000. Show Answer Correct Answer: D) $ 2, 000. 3. A computer programmer writing software has the highest levels of education. This type of job falls under the category of ..... A) Professional labor. B) Semi-skilled labor. C) Unskilled labor. D) Skilled labor. Show Answer Correct Answer: A) Professional labor. 4. The primary purpose of taxes is to A) Provide goods and services that are too expensive for people to buy. B) Provide services that improve our quality of life. C) Take money from one group and give it to another. D) Allow people to have free goods and services. Show Answer Correct Answer: B) Provide services that improve our quality of life. 5. Assume that the lemons are all grown, processed into lemonade, and sold to domestic consumers during the same year. What is the impact on GDP for that year? A) Adds $ 67, 000 to GDP. B) Adds $ 10, 000 to GDP. C) Adds $ 12, 000 to GDP. D) Adds $ 22, 000 to GDP. Show Answer Correct Answer: D) Adds $ 22, 000 to GDP. 6. For a recession to exist real GDP needs to decline for at least ..... quarters or more. A) 8 (24 months). B) 6 (18 months). C) 4 (12 months). D) 2 (6 months). Show Answer Correct Answer: D) 2 (6 months). 7. In a 100-percent reserve banking system, if people decided to decrease theamount of currency they held by increasing the amount they held in checkabledeposits A) M1 would increase. B) M1 would decrease. C) M1 would not change. D) M1 might rise or fall. Show Answer Correct Answer: C) M1 would not change. 8. Which is NOT an effect of Expansionary Fiscal Policy A) Encourage consumer spending and investment. B) Increase Real GDP. C) Increase Price Level. D) Decrease Employment. Show Answer Correct Answer: D) Decrease Employment. 9. What is the PCE deflator? A) A measure of the price of goods and services bought by consumers. B) A measure of the price of all goods and services produced. C) A measure of the increase in the cost of living. D) A measure of how quickly prices are rising. Show Answer Correct Answer: A) A measure of the price of goods and services bought by consumers. 10. What do you call an economic policy that is designed to influence the aggregate demand in order to control the economy? A) Monetary policy. B) Fiscal policy. C) National policy. D) Spending policy. Show Answer Correct Answer: B) Fiscal policy. 11. Episode 2 of " Commanding heights " opened with a segment about the city of ....., whose existence originated with A) East Berlin; the construction of the Berlin Wall in 1961. B) Norilsk; its being a prison camp in the Soviet Gulag system. C) New York; the state of Manhattan Island by the Lenape Indians to Dutch Settlers for just 60 guilders. D) Oak Ridge, Tennessee; the development of the atomic bomb. Show Answer Correct Answer: B) Norilsk; its being a prison camp in the Soviet Gulag system. 12. What are the factors that contribute to unemployment? A) Economic conditions, technological advancements, globalization, education and skill levels, government policies, and demographic factors. B) Lack of job opportunities, low wages, overpopulation, natural disasters, lack of infrastructure, and discrimination. Show Answer Correct Answer: A) Economic conditions, technological advancements, globalization, education and skill levels, government policies, and demographic factors. 13. In the circular flow diagram, which of the following is true? A) Businesses pay wages, rent, interest, and profits to households in return for use of factors of production. B) Businesses purchase goods and services from households in return for money payments. C) Households pay wages, rent, interest, and profits to businesses in return for use of factors of production. D) The relationship between households and businesses exist only in a traditional society. E) The relationship between households and businesses exists only in command economy. Show Answer Correct Answer: A) Businesses pay wages, rent, interest, and profits to households in return for use of factors of production. 14. Between what percent is the "normal" average of unemployment for the United States? A) 7 to 10%. B) 11 to 15%. C) 1 to 3%. D) 4 to 6%. Show Answer Correct Answer: D) 4 to 6%. 15. Net factor income from abroad is A) Factor income received from abroad. B) Factor income received from abroad minus factor income paid abroad. C) Visible exports minus visible imports. D) Exports minus imports. Show Answer Correct Answer: B) Factor income received from abroad minus factor income paid abroad. 16. When WalMart pays income taxes, what two parts of the circular flow model are involved? A) Consumers and producers. B) Businesses and government. C) Consumers and government. D) Producers and consumers. Show Answer Correct Answer: B) Businesses and government. 17. Which of these is a possible impact of HS2? A) Loss of jobs. B) Environmental costs e.g. noise and air pollution. C) Increase in the quantity of imports. D) Hyper-inflation. Show Answer Correct Answer: B) Environmental costs e.g. noise and air pollution. 18. Which of the following is NOT a factor that economists would look at to determine economic health? A) GDP. B) CPI. C) Unemployment. D) Price Elasticity. Show Answer Correct Answer: D) Price Elasticity. 19. True or False:A majority of the federal government's revenue is collected through personal income taxes. A) False. B) True . Show Answer Correct Answer: B) True . 20. A temporary unemployment which exists during the period of the transfer of labor from one occupation to another is called A) Frictional Unemployment. B) Voluntary Unemployment. C) Cyclical Unemployment. D) Involuntary Unemployment. Show Answer Correct Answer: A) Frictional Unemployment. 21. Real GDP is a good indicator of the stage of the business cycle. A) Lie. B) True. Show Answer Correct Answer: B) True. 22. What would a trend of increasing unemployment over an extended period indicate? A) Decreasing stock dividends. B) A contraction phase of the business cycle. C) A decrease in the number of aid recipients. D) Large wage reduction. Show Answer Correct Answer: B) A contraction phase of the business cycle. 23. Value of current gross domestic product adjusted for inflation A) GDP. B) Real GDP. C) Inflation. D) None of above. Show Answer Correct Answer: B) Real GDP. 24. In the short run, an increase in the money supply will ..... prices and ..... real GDP A) Increase, increase. B) Increase, decrease. C) Decrease, decrease. D) Decrease, increase. Show Answer Correct Answer: A) Increase, increase. 25. A table showing the quantities produced or offered for sale at each and every possible price in the market at a given point in time. A) Supply schedule. B) Demand schedule. C) Supply curve. D) Market supply curve. Show Answer Correct Answer: A) Supply schedule. 26. If the total labor force is 1000 and the number of unemployed individuals is 200, what is the unemployment rate? A) 10. B) 20. C) 30. D) 50. Show Answer Correct Answer: B) 20. 27. Which of the following is NOT an example of a public good? A) Lighthouse. B) Public transportation. C) National Defense. D) Fireworks display. Show Answer Correct Answer: D) Fireworks display. 28. A free market economy solves its central problem through A) Planning authority. B) Market mechanism. C) Both. D) None of above. Show Answer Correct Answer: C) Both. 29. A change in which variable in the quantity theory of money is most likely to cause large and sustained changes in prices? *a. Y, the real GDP.b. V, velocity of money.c. M, the money supply.d. None of the above. A) Y, the real GDP. B) V, velocity of money. C) M, the money supply. D) None of the above. Show Answer Correct Answer: C) M, the money supply. 30. Changes are regularly made to the weights used in the UK's Consumer Prices Index. This means that the index takes account of changes in A) Month by month increases in the general price level. B) Spending patterns throughout the economy. C) The growth of real output in the economy. D) Total spending on all domestic goods and services. Show Answer Correct Answer: B) Spending patterns throughout the economy. ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesMacroeconomics Quiz 1Macroeconomics Quiz 2Macroeconomics Quiz 3Macroeconomics Quiz 4Macroeconomics Quiz 5Macroeconomics Quiz 6Macroeconomics Quiz 7Macroeconomics Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books