This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 13 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Who among the following are Consumers? A) Banks. B) Firms. C) Households. D) Exporters. Show Answer Correct Answer: C) Households. 2. One problem with a massive amount of national debt is that: A) It might "crowd out" borrowers from the money supply. B) Property taxes are a better option. C) It will take ten thousand years to pay back. D) I would tell you, but you are not going to like it. Show Answer Correct Answer: A) It might "crowd out" borrowers from the money supply. 3. Is this counted in the GDP of the US?Cars made by a US company in South Korea. A) Yes. B) No. Show Answer Correct Answer: B) No. 4. Investment in ..... helps grow the economy by increasing productivity. A) Capital. B) Land. C) Entrepreneurship. D) Labor. Show Answer Correct Answer: A) Capital. 5. The study of the economy as a whole, including countrywide issues and economic relationships between countries. A) GDP. B) Macroeconomics. C) Microeconomics. D) Money studies. Show Answer Correct Answer: B) Macroeconomics. 6. What is the largest goal of for a country A) Population Growth. B) Steady Economic Growth. C) Inflation. D) Unsteady Economic Growth. Show Answer Correct Answer: B) Steady Economic Growth. 7. What factor NOT determine the shift in IS curve? A) Increase in investment. B) Increase in money supply. C) Increase in tax. D) Increase in government expenditure. Show Answer Correct Answer: B) Increase in money supply. 8. The Expenditures Approach of Calculating GDP includes ..... A) All spending on final products in the year. B) All Income made from selling all final goods. C) All costs on all products. D) The ammount of people involved in production. Show Answer Correct Answer: A) All spending on final products in the year. 9. What causes real wages to be so rigid? A) Minimum-wage laws. B) Labor unions. C) Efficiency-wages theory. D) All true. Show Answer Correct Answer: D) All true. 10. What are the three statistics that economists and policymakers use most often? A) Gross Domestic Product (GDP), Consumer Price Index (CPI), and Unemployment Rate. B) Gross National Product (GNP), Inflation Rate, and Stock Market Index. C) Gross Domestic Product (GDP), Interest Rate, and Exchange Rate. D) Gross National Income (GNI), Producer Price Index (PPI), and Labor Force Participation Rate. Show Answer Correct Answer: A) Gross Domestic Product (GDP), Consumer Price Index (CPI), and Unemployment Rate. 11. Cars, TVs, computers belong in which part of the GDP formula? GDP = C+I+G+(X-M) A) Net Imports. B) Investment Expenditures. C) Government Expenditures. D) Consumption Expenditures. Show Answer Correct Answer: D) Consumption Expenditures. 12. Which of the following scenarios show frictional unemployment? A) John got laid-off from work since the company is not making enough money. B) Jeff cannot find work since most blue collar jobs are already filled. C) Ramon quit his jobs to move to Canada for a better job offer. D) Alberto works as a call center agent after graduating nursing. Show Answer Correct Answer: C) Ramon quit his jobs to move to Canada for a better job offer. 13. Samrat produces chicken for self consumption. Is his production counted in NI? A) No-Non-market Activity. B) No-Purely financial transaction. C) No-Black Market. D) No-Unreported Income. Show Answer Correct Answer: A) No-Non-market Activity. 14. Samuel Gompers was the leader A) American Federation of Labor. B) Knights of Labor. C) National Labor Union. D) American Railway Union. Show Answer Correct Answer: A) American Federation of Labor. 15. The process of bringing down the rate of inflation that has become embedded in expectations is known as A) Monetary policy. B) Deflation. C) Negative inflation. D) Disinflation. E) Debt deflation. Show Answer Correct Answer: D) Disinflation. 16. Decisions made by the government on its expenditure, taxation and borrowing A) Supply-side policies. B) Monetary policy. C) Indirect taxes. D) Fiscal policy. Show Answer Correct Answer: D) Fiscal policy. 17. Who is hurt by unanticipated inflation? A) -Lenders (people who lend money at fixed interest rates)-People with fixed incomes-Savers. B) -Borrowers (people who borrow money)-A business where the price of the product increases faster than the price of resources. C) -Above 16 years-Able/willing to work-Not institutionalized (jail/hospital)-Not in military, in school full time, or retired. D) None of above. Show Answer Correct Answer: A) -Lenders (people who lend money at fixed interest rates)-People with fixed incomes-Savers. 18. If 1 $ = Rs. 50, and if rises to 1 $ = Rs. 60 it will be called A) Appreciation. B) Depreciation. C) Revaluation. D) All the above. Show Answer Correct Answer: B) Depreciation. 19. Which is a correct statement about mixed economies today A) There are more mixed economies in the world than any other kind. B) Very few economies today can be accurately described as "mixed.". C) Mixed economies exist mostly in nations with communist governments. D) Most nations that once had a mixed economy have evolved into command economies. Show Answer Correct Answer: A) There are more mixed economies in the world than any other kind. 20. In the Keynesian aggregate-expenditure model, if the MPC is 0.75 and gross investment increases by $ 6 billion, equilibrium GDP will increase by A) $ 1.25 billion. B) $ 6 billion. C) $ 24 billion. D) $ 8 billion. Show Answer Correct Answer: C) $ 24 billion. 21. TRUE or FALSE:From 2008 onwards, the European Union has made significant progress towards its Europe 2020 goal of reducing poverty and social exclusion. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 22. When personal incomes increase at the same rate as the inflation rate, purchasing power increases. A) True. B) False. Show Answer Correct Answer: B) False. 23. In perfect competition how much control of price does one seller have? A) Considerable. B) No control. C) A fair amount of control. D) Absolute. Show Answer Correct Answer: B) No control. 24. The amount of money at which a product or service can be bought or sold. A) Input. B) Price. C) Income. D) Market. Show Answer Correct Answer: B) Price. 25. Which of the following will not increase the productivity of labor? A) Improvements in education. B) A lower literacy rate. C) Technological improvements. D) An increase in the capital stock. E) An increase in the size of the labor force. Show Answer Correct Answer: E) An increase in the size of the labor force. 26. Which of the following headlines indicates the use of monetary policy? A) "More money in everyone's pockets as taxes are lowered". B) "Government declares its determination to halt the fall in the value of money". C) "Misery for homeowners as interest rates are raised". D) "Big reduction in government borrowing announced in the budget". Show Answer Correct Answer: C) "Misery for homeowners as interest rates are raised". 27. Which type of economy involves trading, and doesn't usually use money? A) Market. B) Command. C) Mixed. D) Traditional. Show Answer Correct Answer: D) Traditional. 28. The nation of Swampastan produces only two goods, chips and dip. Calculate the GDP for Swampastan if dip retails for $ 3.00 a pound and 10 pounds are produced while chips sell for $ 2.00 a pound and 20 pounds are produced. A) $ 70.00. B) $ 30.00. C) $ 1, 200.00. D) $ 150.00. Show Answer Correct Answer: A) $ 70.00. 29. Payment made by the government to help a producer to continue to operate is ..... A) Tax. B) Subsidy. C) Tariff. D) Remittance. Show Answer Correct Answer: B) Subsidy. 30. Which of the following is not considered investment? A) The construction of a new factory. B) The increase in planned inventories. C) The purchase of government bonds. D) The acquisition of capital goods. Show Answer Correct Answer: C) The purchase of government bonds. ← 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