This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 135 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 135 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In a budget ....., expenses are higher than revenues. A) Balanced. B) Deficit. C) Surplus. D) None of above. Show Answer Correct Answer: B) Deficit. 2. The ..... measures the cost of the market basket of a typical urban American family. A) Consumer Price Index (CPI). B) Aggregate Price Level. C) Inflation Rate. D) Producer Price Index (PPI). Show Answer Correct Answer: A) Consumer Price Index (CPI). 3. Which of the following statements is not true for subjective well-being? A) Subjective well-being is measured using surveys. B) There is no influence of income on measured subjective well-being. C) Income seems to have a stronger influence on subjective well-being at low income levels than at high income levels. D) The Stiglitz-Sen-Fitoussi Commission proposed to include subjective well-being when measuring overall well-being. E) There is by now a large body of scientific research on the subjective well-being indicators. Show Answer Correct Answer: B) There is no influence of income on measured subjective well-being. 4. What is the producer price index? A) A measure of the price of goods bought by consumers. B) A measure of the price of goods bought by firms. C) A measure of the price of specific types of goods. D) A measure of the increase in price of a consumer basket excluding food and energy products. Show Answer Correct Answer: B) A measure of the price of goods bought by firms. 5. The value of the output of all goods and services produced within a country in a year. A) National income. B) Gross Domestic Product. C) Net domestic product. D) Total output. Show Answer Correct Answer: B) Gross Domestic Product. 6. Consumption patterns according to Andro, Brumberg and Modigliani, namely: A) Old age, unable to generate income anymore:dissaving. B) There are no wrong answers. C) Age 0-age unable to generate his own income:dissaving (he consumes but does not generate income). D) Working age-age when you can no longer work:experiencing a saving period. E) There is no right answer. Show Answer Correct Answer: B) There are no wrong answers. 7. Which of the following explains the negative slope of Philip curve A) At higher level of inflation nominal wage increases with the same rate as inflation. B) When price increases real wage increases. C) Real wage falls with the increase in the rate of inflation. D) Unemployment is insensitive to the rate of inflation. Show Answer Correct Answer: C) Real wage falls with the increase in the rate of inflation. 8. When the government raises taxes, what does it take out of circulation? A) Credit. B) Jobs. C) Money. D) People. Show Answer Correct Answer: C) Money. 9. The economy has stable prices, but high unemployment. What is the most likely way to reduce unemployment in the short term? A) Increase taxes. B) Increase imports. C) Decrease government spending. D) Increase government spending. Show Answer Correct Answer: D) Increase government spending. 10. What do debit cards and checks have in common? A) The money comes directly out of your account. B) You can pay the full amount later. C) You are really taking out a small loan. D) None of above. Show Answer Correct Answer: A) The money comes directly out of your account. 11. An economic system based on private ownership of money, land, and labor A) Socialism. B) Capitalism. C) Facism. D) Communism. Show Answer Correct Answer: B) Capitalism. 12. If a country has a population of 1, 000, an area of 100 square miles, and a GDP of $ 5, 000, 000, then its GDP per capita is: A) $ 50, 000. B) $ 500. C) $ 5, 000. D) $ 5, 000, 000. E) $ 50. Show Answer Correct Answer: C) $ 5, 000. 13. Which government agency is NOT tasked with measuring data related to the three big macroeconomic goals? A) Department of Education. B) Bureau of Labor Statistics. C) Federal Reserve Bank. D) Bureau of Economic Analysis. Show Answer Correct Answer: A) Department of Education. 14. ..... Advantage:When a producer can produce more of a good/service than another producer. A) Comparative. B) Consumption. C) Hippopotamus. D) Absolute. Show Answer Correct Answer: D) Absolute. 15. Scope of Macro Economics include- A) 1.Theory of income and employment. B) 2.Theory of money. C) 3.Theory of general price level. D) 4.All the above. Show Answer Correct Answer: D) 4.All the above. 16. Groups of buyers and sellers voluntarily integrating to exchange goods, services, or resources based upon price A) Microeconomics. B) Market. C) Macroeconomics. D) Mixed economy. Show Answer Correct Answer: B) Market. 17. What are some examples of capital resources? A) Doctor, Engineer, Teacher, Worker. B) Trees, cows, oil, water, rocks, minerals. C) Starting a business for profit. D) Truck, building, container, computer. Show Answer Correct Answer: D) Truck, building, container, computer. 18. Monetarist Economics Founded By? A) John Maynard Keynes. B) David Ricardo. C) Adam Smith. D) Milton Friedman. Show Answer Correct Answer: D) Milton Friedman. 19. True or False:The share of the economy going to federal taxes has increased substantially over time. A) False . B) True. Show Answer Correct Answer: A) False . 20. According to the ....., international differences in real GDP per capita tend to narrow over time. A) GDP per Capita Hypothesis. B) Convergence Hypothesis. C) Divergence Hypothesis. D) Real GDP Hypothesis. Show Answer Correct Answer: B) Convergence Hypothesis. 21. Which of the following would someone interested in free trade support? A) NATO. B) Embargo. C) NAFTA. D) Tariffs. Show Answer Correct Answer: C) NAFTA. 22. Which of the following is a contractionary Fiscal Policy measure? A) Increase in government spending. B) Decrease in taxes. C) Increase in transfer payments. D) Increase in tax rates. Show Answer Correct Answer: D) Increase in tax rates. 23. According to the short-run Phillips curve, a contractionary fiscal policy will result in A) A decrease in both unemployment and prices. B) A decrease in inflation and an increase in unemployment. C) A decrease in both wage rates and unemployment. D) An increase in both wage rates and unemployment. E) An increase in unemployment due to crowding out. Show Answer Correct Answer: B) A decrease in inflation and an increase in unemployment. 24. Which of the following is considered contractionary fiscal policy? A) The New Jersey legislature cuts highway spending to balance its budget. B) Congress increases defense spending. C) Legislation removes a college tuition deduction from federal income taxes. D) Congress increases the income tax rate. Show Answer Correct Answer: D) Congress increases the income tax rate. 25. Macroeconomics is the study of economics from the view point of A) The entire economy. B) Individual and firms spending. C) The individual household. D) Local government expenditure. Show Answer Correct Answer: A) The entire economy. 26. Purchasing power parity theory is not always accurate because..... A) Goods are not easy to produce. B) Goods produced in different countries are not always perfect substitutes. C) Each country can easily imitate goods produced by other countries. D) The use of the internet allows all goods to be traded. Show Answer Correct Answer: B) Goods produced in different countries are not always perfect substitutes. 27. What is a consumer? A) Someone who makes and sells goods and services. B) Someone who buys and uses goods and services. C) Someone who thinks of ideas about goods and services. D) Someone who enjoys the use of goods and services. Show Answer Correct Answer: B) Someone who buys and uses goods and services. 28. The economy seems to be doing really well. Almost everyone has a job, which is good, but it's leading to inflation. If the Chair of the Federal Reserve wants to decrease the inflation rate, which policy should they choose? A) Raise the Federal Funds Rate. B) Lower the Federal Funds Rate. Show Answer Correct Answer: A) Raise the Federal Funds Rate. 29. What is the total value of all final goods and services produced in an economy called? A) Microeconomics. B) Gross Domestic Product (GDP). C) Business Cycle. D) Macroeconomics. Show Answer Correct Answer: B) Gross Domestic Product (GDP). 30. The U.S. national debt: A) Is the same as our deficit. B) Is less than our deficit. C) Is owed to people who have bought U.S. government bonds and each year's deficit adds to the total number. D) Is around 16 trillion dollars. Show Answer Correct Answer: C) Is owed to people who have bought U.S. government bonds and each year's deficit adds to the total number. ← 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