This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 136 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 136 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What did Adam Smith think was most economic? A) Communism. B) Capitalism. C) Prison. D) Inflation. Show Answer Correct Answer: B) Capitalism. 2. If the economy was in a recessionary gap, to return to RGDP, the government could A) Decrease taxes and increase government purchases. B) Increase taxes and increase government purchases. C) Decrease taxes and decrease government purchases. D) Do all of the above. Show Answer Correct Answer: A) Decrease taxes and increase government purchases. 3. If the equilibrium price of a taxi ride is $ 30, but a taxi company tried to charge $ 40 for rides, this would result in a ..... in taxis because quantity supplied is ..... than quantity demanded. A) Shortage higher. B) Surplus higher. C) Surplus lower. D) Shortage lower. Show Answer Correct Answer: B) Surplus higher. 4. Which of the following NOT considered mandatory spending? A) Assistance for low-income families. B) Social security. C) National parks. D) Medicare. Show Answer Correct Answer: C) National parks. 5. With an MPS of 0.2, an increase in government spending of $ 240 m will result in the equilibrium level of income rising by A) $ 2400m. B) $ 1200m. C) $ 480m. D) $ 960m. Show Answer Correct Answer: B) $ 1200m. 6. The GDP Deflator / GDP Deflator is a description of the difference between the increase in Nominal GDP which is greater than Real GDP due to price increases. The relationship between Nominal GDP, Real GDP, and GDP Deflator can be written using the formula..... A) Pt = Ct / It. B) Bit = $ it/it. C) $ Yt = Pt x Ct. D) $ Yt = Ct x $ C. Show Answer Correct Answer: B) Bit = $ it/it. 7. What does it mean to be diversified? A) Having investments that react differently to market or economic events. B) Having as much money in bonds as you do in stocks. C) Having a financial advisor. D) Owning at least 20 stocks in whatever industry you think you own best. Show Answer Correct Answer: A) Having investments that react differently to market or economic events. 8. What is a cartel? A) When people get together and pray. B) A group of producers that work together to protect their interests. C) A group of people who make corn bread. D) A group of producers that don't work together. Show Answer Correct Answer: B) A group of producers that work together to protect their interests. 9. A government budget deficit occurs when the government spending exceeds government revenue is A) Less than. B) Exceeds. C) Is equal to. D) None of above. Show Answer Correct Answer: B) Exceeds. 10. A rise in unemployment would indicate the economy is in a ..... A) Expansion Period. B) Recession. C) Trough. D) Peak. Show Answer Correct Answer: B) Recession. 11. Suppose the economy is operating on the LM curve but not on the IS curve. Given this information, we know that A) The goods market is in equilibrium and the money market is not in equilibrium. B) The money market and bond markets are in equilibrium and the goods market is not in equilibrium. C) The money market and goods market are in equilibrium and the bond market is not in equilibrium. D) The money, bond and goods markets are all in equilibrium. Show Answer Correct Answer: B) The money market and bond markets are in equilibrium and the goods market is not in equilibrium. 12. Suppose you have a $ 20 iTunes gift card with which you can buy (download) songs or videos. Songs cost $ 1.00 each and videos cost $ 2.00 each. What is the opportunity cost of one video? A) It is constant and equal to 1/2 song. B) It is constant and equal to 2 songs. C) It is $ 1.00. D) An increases in cost as more videos are purchased. Show Answer Correct Answer: B) It is constant and equal to 2 songs. 13. It is ok to leave the amount portion of a check blank if you are unsure of the amount of an upcoming purchase. A) True. B) False. Show Answer Correct Answer: B) False. 14. The following are considered leakages from the circular flow of income, EXCEPT ..... A) Taxes. B) Imports. C) Borrowing. D) Savings. Show Answer Correct Answer: C) Borrowing. 15. Upsilon Natural Gas, Inc. is a monopoly enjoying very high barriers to entry.Its marginal cost is $ 40 and its average cost is $ 70. A recent market study hasdetermined the price elasticity of demand is 1.5. The company will most likelyset its price at: A) $ 40. B) $ 70. C) $ 120. D) None of above. Show Answer Correct Answer: C) $ 120. 16. In current account balance, it is including the ..... A) Import goods only. B) Export goods only. C) Import and export goods. D) Import and export service. Show Answer Correct Answer: C) Import and export goods. 17. Which of the following is NOT one of the components of Gross Domestic Product (GDP)? A) Consumption. B) Investment. C) Producer Price Index. D) Government spending. Show Answer Correct Answer: C) Producer Price Index. 18. All of the following are different types of Unemployment except ..... A) Cyclical Unemployment. B) Recessional Unemployment. C) Frictional Unemployment. D) Structural Unemployment. E) Technological Unemployment. Show Answer Correct Answer: B) Recessional Unemployment. 19. Output-Expenditure ModelGDP = Consumer C + Investment I +? + Exports & Imports (X-M) A) Demand-D. B) Taxes-T. C) Product-P. D) Government-G. Show Answer Correct Answer: D) Government-G. 20. The Natural Rate of Unemployment includes A) Frictional and structural unemployment. B) Structural and cyclical unemployment. C) Frictional and cyclical unemployment. D) None of above. Show Answer Correct Answer: A) Frictional and structural unemployment. 21. Which Answer Describes The Crowding Out Effect A) When the price levels increases, wages/resource costs will increase as well. B) There is not a tradeoff between unemployment and inflation. C) Increased government involvement in a sector of the economy may affects the remainder of the market. D) When the price levels increase, wages/resource costs will not increase. Show Answer Correct Answer: C) Increased government involvement in a sector of the economy may affects the remainder of the market. 22. Which feature would be most helpful in identifying a typical developing country? A) The level of Gross Domestic Product. B) The size of the population. C) The rate of rural to urban migration. D) The size of geographical area. Show Answer Correct Answer: C) The rate of rural to urban migration. 23. When consumption increases, employment usually A) Decreases. B) Remains the same. C) Increases. D) Enters stagflation. Show Answer Correct Answer: C) Increases. 24. If a wave of Peruvian immigrants migrated to south Florida, how might this affect the demand for Peruvian goods in the region? A) Demand would increase. B) Demand would decrease. C) Demand would be unchanged. D) Quantity Demanded would increase. Show Answer Correct Answer: A) Demand would increase. 25. An increase in US deficit spending will cause a(n) ..... in domestic U.S. business investment and a(n) ..... of the U.S. dollar in foreign exchange markets. A) Decrease, appreciation. B) Increase, depreciation. C) Increase, appreciation. D) Decrease, depreciation. Show Answer Correct Answer: A) Decrease, appreciation. 26. TRUE or FALSE:Discouraged workers are defined as those workers who are working at a job that they do not enjoy. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 27. The FICA deduction taken from your paycheck is A) Social Security and Medicare. B) Medicare and sales tax. C) Medicare and tax loopholes. D) Sales tax and flat tax. Show Answer Correct Answer: A) Social Security and Medicare. 28. Which one of the following is an example of injection? A) Saving. B) Government expenditure. C) Import. D) Tax. Show Answer Correct Answer: B) Government expenditure. 29. What is meant by incidence of taxation? A) How the tax burden is shared between consumers and producers. B) The extent to which tax is evaded. C) What proportion of the country's products are taxed. D) Who receives the tax revenue raised. Show Answer Correct Answer: A) How the tax burden is shared between consumers and producers. 30. The most unpleasant sport to your favorite teacher is: A) Swimming. B) Cycling. C) Soccer. D) Football. Show Answer Correct Answer: C) Soccer. ← 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