This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 130 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 130 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Estimate of its total spending and total revenue A) Budget Deficit. B) Budget Surplus. C) Budget. D) CPI. Show Answer Correct Answer: C) Budget. 2. A tax rate is applied to an income range, or A) Tax Credit. B) Progressive Taxes. C) Tax Bracket. D) Other Taxes. Show Answer Correct Answer: C) Tax Bracket. 3. When a country's currency appreciates, its exports ..... A) Double. B) Become cheaper. C) Drop by at least 1/2. D) Become more expensive. Show Answer Correct Answer: D) Become more expensive. 4. The percentage change in the CPI measures the inflation rate A) True. B) False. Show Answer Correct Answer: A) True. 5. October 1st ..... September 30 A) Appropriations Bills. B) Fiscal Year. C) Physical Year. D) Tax Return. Show Answer Correct Answer: B) Fiscal Year. 6. Someone buys a car in exchange for a large amount of money. They have completed an exchange in which part of the circuclar flow model? A) Individuals. B) Product Market. C) Firms. D) Factor Market. Show Answer Correct Answer: B) Product Market. 7. What is the purpose of studying economics? A) To hone your own economic thinking skills. B) So that you can predict something that will happen in the future. C) To understand natural science. D) To analyze the way humans socialize. Show Answer Correct Answer: A) To hone your own economic thinking skills. 8. Which of the following is related to Microeconomics? A) Inflation in the country. B) National income. C) Unemployment problem. D) Income from postal development. Show Answer Correct Answer: D) Income from postal development. 9. When deciding "what to produce", what is said to be limited? A) Resources. B) Population. Show Answer Correct Answer: A) Resources. 10. The following are the reasons for the difference in the prices of goods consumed and the prices of goods produced, except..... A) Some goods purchased by consumers are obtained through import activities. B) Some GDP goods are sold to the government, as well as to foreigners. C) Some goods in GDP are not sold to consumers but to companies. D) Some goods in GDP are sold to consumers as well as companies. Show Answer Correct Answer: D) Some goods in GDP are sold to consumers as well as companies. 11. A reduction in govt budget deficit affect on steady state level and steady state growth of total output per person A) Increases s.s level, s.s growth rate increases. B) Increases s.s level, s.s growth rate decreases. C) Decreases s.s level, s.s growth rate unchanged. D) Increases s.s level, s.s growth rate unchanged. Show Answer Correct Answer: D) Increases s.s level, s.s growth rate unchanged. 12. Which of the following will cause a shift to the left in the supply of apples? A) Widespread early frost that damages apple trees. B) A tax incentive given by the government to apple growers. C) A new fertilizer that is used for growing apples. D) More farmers deciding to plant apple trees. Show Answer Correct Answer: A) Widespread early frost that damages apple trees. 13. Which of the following policies will most likely stimulate economic growth A) A tax credit on investment spending. B) Elimination of copyright and patent protection laws. C) A reduction in funding for education. D) Change of the Social Security retirement age from sixty-five to fifty-eight. E) Increased government regulations for research and development. Show Answer Correct Answer: A) A tax credit on investment spending. 14. Why is the Federal Reserve known as the "banker's bank" ? A) The Fed sets interest rates at the banks for consumer lending. B) The Fed insures deposits at the bank for up to $ 250, 000. C) The Fed contains the personal deposits of bank presidents around the county. D) The Fed can use the discount rate to loan money directly to banks. Show Answer Correct Answer: D) The Fed can use the discount rate to loan money directly to banks. 15. Depreciation reserve fund is needed for: A) Inventory stock. B) Advertisement. C) Replacement investment. D) None of these. Show Answer Correct Answer: C) Replacement investment. 16. The study of the allocation ( or use ) of scarce ( or limited ) resources to satisfy unlimited and competing want r A) Economics. B) Markets. C) Macroeconomics. D) Microeconomics. Show Answer Correct Answer: A) Economics. 17. If the government lowers taxes and increases spending, this is likely to lead to ..... inflation A) Public-pushed. B) Demand-pulled. C) Cost-pushed. D) Hyperinflation. Show Answer Correct Answer: B) Demand-pulled. 18. In factors income profits include which of the following A) Dividend + corporate tax + corporate savings. B) Dividend + net retain earnings + corporate tax. C) None of the above. D) Both 1 and 2. Show Answer Correct Answer: D) Both 1 and 2. 19. This tax is designed to take the same percentage of income regardless of how much money you make. A) Regressive Tax. B) Proportional Tax. C) Progressive Tax. D) None of above. Show Answer Correct Answer: B) Proportional Tax. 20. When a production possibilities frontier shifts outward (to the right), it is demonstrating the concept of: A) Tradeoffs. B) Economic growth. C) Opportunity cost. D) Efficiency. Show Answer Correct Answer: B) Economic growth. 21. Which of the following is the most likely effect of a government policy that leads to more development of technology used by firms throughout an economy? A) A negative supply shock and a higher price level. B) A positive demand shock and a lower growth rate. C) A positive supply shock and higher growth rate. D) A positive supply shock and a higher price level. E) A negative demand shock and a lower price level. Show Answer Correct Answer: C) A positive supply shock and higher growth rate. 22. Which labor union-employer relationship best describes the term collective bargaining? A) A third-party helps labor union and employer settle their dispute or disagreement. B) A group of workers decide to negotiate with their employer for higher wages. Show Answer Correct Answer: B) A group of workers decide to negotiate with their employer for higher wages. 23. Suppose an economy is currently in a recession. Assume the government then undertakes expansionary fiscal policy, but not enough to move the economy to the full employment level of output. Based on the AD/AS model, what would we expect to be the most likely outcome of this policy in the short run? A) An increase in output but little change in inflation. B) A decrease in inflation and no change in output. C) An increase in inflation and no change in output. D) A decrease in output but little change in inflation. E) An increase in output but a large increase in inflation. Show Answer Correct Answer: A) An increase in output but little change in inflation. 24. The outer circle in the circular flow diagram is the flow of ..... A) Goods, services, and productive resources. B) Money. C) Aggregate supply and demand. D) Price and quantity. Show Answer Correct Answer: B) Money. 25. Which of the following situations will benefit lenders of fixed interest rate loans? A) The actual inflation rate is equal to the fixed interest rate. B) The actual inflation rate is less than the expected inflation rate. C) There is no cyclical unemployment. D) The actual inflation rate is equal to the natural rate of unemployment. E) The consumer price index is greater than 100. Show Answer Correct Answer: B) The actual inflation rate is less than the expected inflation rate. 26. What is included in microeconomics? A) The calculation of national income and expenditure. B) The effects of a change in exchange rates on the trade balance of an economy. C) The effects of an increase in the price of a good or service. D) The factors leading to demand-pull inflation. Show Answer Correct Answer: C) The effects of an increase in the price of a good or service. 27. The aggregate supply curve is a positive relationship between the price level and the level of economy in a given period. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 28. When is the budget of a government described as balanced? A) When direct taxes and indirect taxes are equal. B) When exports and imports are equal. C) When government spending and revenue are equal. D) When the demand for money and the supply of money are equal. Show Answer Correct Answer: C) When government spending and revenue are equal. 29. Which of the following is the most appropriate fiscal policy for recession? A) Increases in tax rate. B) Decreases in tax rate. C) Increases in interest rate. D) Decreases in government spending. Show Answer Correct Answer: B) Decreases in tax rate. 30. Macroeconomics theory studies the following except how ..... A) To determine international trade activities. B) To determine the equilibrium income in an economy. C) To determine the unemployment and inflation rate. D) To determine type and quantity of goods to produced. Show Answer Correct Answer: D) To determine type and quantity of goods to produced. ← 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