This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 132 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 132 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. GDP measures the: A) Total market value of intermediate goods and services produced by the citizens of a country in a given year. B) Total market value of all final goods and services produced in an economy in a given year. C) Change in total employment at U.S. owned firms over the course of a given year. D) Change in production levels at U.S. owned firms measured quarterly. Show Answer Correct Answer: B) Total market value of all final goods and services produced in an economy in a given year. 2. Which of the following is wrong about inflation A) Inflation reduces money value. B) Demand pull inflation before reaching full employment causes increase in income and output. C) Cost push inflation shifts supply curve rightward. D) Cost push inflation is caused by an increase in cost of production. Show Answer Correct Answer: C) Cost push inflation shifts supply curve rightward. 3. Consists of all claims against the government which may have resulted from loans or advances extended to the Philippine government or as payment for goods and services rendered to it for which the existence of the government has been acknowledge by the government. A) Public funds. B) Government funds. C) Government borrowings. D) Public debts. Show Answer Correct Answer: D) Public debts. 4. If short-run equilibrium in the Mundell-Fleming model is represented by a graph with Y along the horizontal axis and the exchange rate along the vertical axis, then the IS curve: A) Slopes downward and to the right because the higher the exchange rate, the lower the level of net exports and, therefore, of short-run equilibrium income in the goods market. B) Is vertical because there is only one investment level that is consistent with the world interest rate. C) Is vertical because the exchange rate does not enter into the IS equation. D) Slopes downward and to the right because the higher the exchange rate, the higher the level of net exports and, therefore, of short-run equilibrium income in the goods market. Show Answer Correct Answer: A) Slopes downward and to the right because the higher the exchange rate, the lower the level of net exports and, therefore, of short-run equilibrium income in the goods market. 5. Form used to file income taxes. A) Withholding. B) Tax return. C) Tax credit. D) Taxable income. Show Answer Correct Answer: B) Tax return. 6. As an outdoor lifeguard, you don't have control over your end date, but you expect it and can plan for it. A) Structural unemployment. B) Seasonal unemployment. C) Frictional unemployment. D) Cyclical unemployment. Show Answer Correct Answer: B) Seasonal unemployment. 7. What shows the quantities of products demanded at each price by ALL consumers in the market A) An elasticity and consumption list. B) A schedule of consumer prices. C) A market pricing lists. D) A market demand schedule. Show Answer Correct Answer: D) A market demand schedule. 8. Suppose autonomous consumption is $ 20, investment is $ 30, government expenditure is 40, net exports 10. Assume the mpc=0.7 and the tax rate=0.2. What is aggregate consumption (in dollars) for the open economy? A) 147.27. B) 227.27. C) C = 20 + 0.56Y. D) C = 20 + 0.7Y. Show Answer Correct Answer: A) 147.27. 9. Reduction in a car's value due to age and wear-and-tear is known as: A) Appreciation. B) Stagnation. C) Depreciation. D) Inflation. Show Answer Correct Answer: C) Depreciation. 10. Of the following, which is not included in the calculation of disposable income? A) Employee transportation allowance. B) Interest on consumer loans. C) EPF contributions. D) Distributed corporate profit. Show Answer Correct Answer: C) EPF contributions. 11. The Mundell-Fleming model assumes that: A) Prices are fixed, whereas the IS-LM model assumes that prices are flexible. B) As in the IS-LM model, prices are flexible. C) As in the IS-LM model, prices are fixed. D) Prices are flexible, whereas the IS-LM model assumes that prices are fixed. Show Answer Correct Answer: C) As in the IS-LM model, prices are fixed. 12. The four factors of production are:land, labor, capital, entrepreneurship A) Land, labor, capital, entrepreneurshipa decrease in the input price for production. B) The knowledge and skills that workers acquire through education, training, and experience. C) A decrease in the input price for production. D) Specialization in production. Show Answer Correct Answer: A) Land, labor, capital, entrepreneurshipa decrease in the input price for production. 13. Which of the following shifts the aggregate supply curve to the right? A) A technological improvement that increases worker productivity. B) A successful wage push by workers. C) An increase in the price of crude oil. D) Expectations of a higher aggregate price level. Show Answer Correct Answer: A) A technological improvement that increases worker productivity. 14. What is a macroeconomic concept? A) The equilibrium price in the market for a good. B) The reason for a change in a firm's behaviour. C) The total spending in an economy. D) The effect of a price change of a good. Show Answer Correct Answer: C) The total spending in an economy. 15. All other things being equal, an economy has a budget surplus when A) Exports are greater than imports. B) Government tax revenue increases at a faster rate than its spending. C) Government spending is greater than tax revenue. D) Tax revenue is greater than government spending. Show Answer Correct Answer: D) Tax revenue is greater than government spending. 16. The money demand curve shows A) The quantity of bonds that the Fed will buy at different price levels. B) The various amounts of money that individuals will spend at different levels of GDP. C) The various amounts of money that individuals will hold at different price levels. D) The various amounts of money that individuals will hold at different nominal interest rates. Show Answer Correct Answer: D) The various amounts of money that individuals will hold at different nominal interest rates. 17. Crowding out has what effect on the SRAS and AD demand model? A) Shifts aggregate demand to the right. B) Shifts aggregate demand to the left. C) Shifts short run aggregate supply to the right. D) Shifts short run aggregate supply to the left. Show Answer Correct Answer: B) Shifts aggregate demand to the left. 18. Which of the following represents a case of structural unemployment? A) There has been increasingly heavy competition for jobs in sectors affected by automation. B) The rate of hiring by large companies fell considerably during the last economic recession. C) A large restaurant laid off the new servers it hired to work during the busy tourist season. D) There are a large number of job opportunities in the technology sector that call for rare skills. Show Answer Correct Answer: D) There are a large number of job opportunities in the technology sector that call for rare skills. 19. Which one of the following is most likely to lead to a fall in aggregate investment? A) A reduction in the level of unemployment. B) An increase in spare capacity in the economy. C) A reduction in the average level of interest rates. D) An increase in aggregate demand. Show Answer Correct Answer: B) An increase in spare capacity in the economy. 20. Which one of the following is a correct statement about monetary policy in the UK? A) Monetary policy does not affect the supply side of the economy. B) When the government uses contractionary fiscal policy, the Bank of England will use expansionary monetary policy to offset the effects. C) Lower interest rates may reduce deflationary pressure but they may also reduce savings. D) Monetary policy may involve the expansion of the money supply to reduce aggregate demand. Show Answer Correct Answer: C) Lower interest rates may reduce deflationary pressure but they may also reduce savings. 21. Government measures concerning taxation, public expenditure, and so on is: A) Monetary policy. B) Fiscal policy. Show Answer Correct Answer: B) Fiscal policy. 22. Which of the following statement is incorrect regarding importance of macro economics- A) 1.Understanding and controlling Economic fluctuations. B) 2. Study of Economic Development & Growth. C) 3.Helpful in understanding Macro Economic Paradoxes. D) 4.All are correct. Show Answer Correct Answer: D) 4.All are correct. 23. Which of the following is not considered to be one of the necessary conditions of Mudharabah? A) Profit is to be shared according to the profit sharing ratio determined at the inception of the contract. B) The capital provided cannot pay a periodical salary to the mudharib. C) Loss is to be borne by the capital provider in all cases, even if it is due to the negligence of the mudharib. D) Sub-Mudharabah is not allowed without the permission of the capital provider. Show Answer Correct Answer: C) Loss is to be borne by the capital provider in all cases, even if it is due to the negligence of the mudharib. 24. Which is an example of a RENEWABLE resource? A) Gold. B) Silver. C) Iron. D) Water. Show Answer Correct Answer: D) Water. 25. The "quantity demanded by all consumers in a market" is known as the: A) Individual demand. B) Market demand. C) Market supply. D) Supply and demand. Show Answer Correct Answer: B) Market demand. 26. Which branch of macroeconomics specifically focuses on role of money supply and central bank? A) Classical School. B) Development Economics. C) Keynesian School. D) Monetarism. Show Answer Correct Answer: D) Monetarism. 27. Theamount of money subtracted from the gross income for taxes. Typically about 30%of your paycheck A) Payroll withholdings. B) Income tax withholdings. C) Medicare. D) Social security. Show Answer Correct Answer: A) Payroll withholdings. 28. When quantity supplied and demanded are equal you have ..... A) Equilibrium. B) A surplus. C) A shortage. D) A deficit. Show Answer Correct Answer: A) Equilibrium. 29. The rate of inflation is most commonly measured by use of A) A price deflator. B) The GDP deflator. C) The consumer price index. D) All of the above. Show Answer Correct Answer: C) The consumer price index. 30. All of the following are sections of the circular flow diagram but ..... A) Factor market. B) Product market. C) Flea Market. D) Firms. Show Answer Correct Answer: C) Flea Market. ← 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