This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 137 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 137 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the consumer price index rises from 120 to 132, what is the inflation rate? A) 20%. B) 10%. C) 12%. D) 8%. Show Answer Correct Answer: B) 10%. 2. The addition of money in circulation by the Central Bank is called..... A) Monetary expansion. B) Monetary contraction. C) Monetary transactions. D) Monetary appreciation. Show Answer Correct Answer: A) Monetary expansion. 3. Which of the following best describes "a general increase in the level of prices for goods and services overtime" ? A) Deflation. B) Inflation. C) Depression. D) Macroeconomics. Show Answer Correct Answer: B) Inflation. 4. Which of the following is included in the calculation of GDP? A) Taxes. B) Intermediate goods. C) Used goods. D) Domestically produced capital goods. Show Answer Correct Answer: D) Domestically produced capital goods. 5. GDP is a method of calculating how much a country produces by adding together Consumption Spending + ..... + Government Spending + ..... A) Interest Rates, Net Exports. B) Wages, Imports. C) Tax Revenue, Imports. D) Investment, Net Exports. Show Answer Correct Answer: D) Investment, Net Exports. 6. In which way does a straight line production possibilities curve differ from a concave production possibilities curve? A) A straight line production possibilities curve has an increasing opportunity cost. B) A straight line production possibilities curve has a constant opportunity cost. C) A straight line production possibilities curve has a decreasing opportunity cost. D) A straight line production possibilities curve does not show opportunity cost. Show Answer Correct Answer: B) A straight line production possibilities curve has a constant opportunity cost. 7. Suppose the Eurostat classifies 135 million people as employed and the unemployment rate is 10%. How many people are in the labor force in this example? A) 148.5 million. B) 165 million. C) 140 million. D) 150 million. E) We don't have enough information to determine the size of the labor force. Show Answer Correct Answer: D) 150 million. 8. Characteristics of perfect competition include A) A large number of buyers and sellers. B) One firm dominates. C) A few firms dominate. D) Competition is missing. Show Answer Correct Answer: A) A large number of buyers and sellers. 9. Janet Yellin has nothing to do with The Fed. A) True. B) False. Show Answer Correct Answer: B) False. 10. People have so many reasons to hold their money. Choose of the following situation to describe the reasons?i. to pay transportation servicesii. to buy groceriesiii. to make a profitable investmentiv. to pay hospital bills A) I, ii and iii only. B) Ii, iii and iv only. C) I, ii and iv only. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. Crowding out occurs when government borrowing leads to an increase in A) Interest rates. B) Unemployment. C) Real GDP. D) Inflation. E) Consumer confidence. Show Answer Correct Answer: A) Interest rates. 12. Hint what to you earn from a business? A) Income. B) Savings. C) Taxes. D) Investment. Show Answer Correct Answer: A) Income. 13. Which of the following equations represents Aggregate Demand A) GDP = X + I + C + (Y-Z). B) GDP = C + I + G + (X-M). C) GDP = C + I + X + (G-T). D) GDP = (1/MPS)*G + I + C. Show Answer Correct Answer: B) GDP = C + I + G + (X-M). 14. The key word "compare" describes which role of money? A) Unit of account/standard of value. B) Medium of exchange. C) Store of value. D) None of above. Show Answer Correct Answer: A) Unit of account/standard of value. 15. If this economy devotes one-half of its available resources to the production of baseballs and the other half to the production of bananas, it could produce A) 150 bananas and 100 baseballs. B) 150 bananas and 150 baseballs. C) 200 bananas and 200 baseballs. D) 300 bananas and 200 baseballs. E) We would have to know the details of this economy's technology in order to determine this. Show Answer Correct Answer: E) We would have to know the details of this economy's technology in order to determine this. 16. Contractionary monetary policy A) Increases fiscal policy. B) Decrease interest rates. C) Decreases the money supply. D) Increases consumer spending. Show Answer Correct Answer: C) Decreases the money supply. 17. Recovery of loan is: A) Revenue receipt. B) Capital expenditure. C) Capital receipt. D) Revenue expenditure. Show Answer Correct Answer: C) Capital receipt. 18. Government operating expenditure consists of A) Pensions and gratuities. B) Agriculture and transport. C) Housing and medical. D) Communication and mineral resources. Show Answer Correct Answer: A) Pensions and gratuities. 19. Unemployment caused by regular transition periods A) Discouraged Workers. B) Structural Unemployment. C) Seasonal Unemployment. D) Frictional Unemployment. Show Answer Correct Answer: D) Frictional Unemployment. 20. The Mundell-Fleming framework studies (A) ....., (B) ..... economies in a world with (C) ..... financial markets and (D) ..... capital mobility. A) (A) small; (B) open; (C) integrated; (D) free. B) (A) large; (B) open; (C) integrated; (D) free. C) (A) small; (B) mercantilist; (C) integrated; (D) free. D) (A) large; (B) open; (C) restricted; (D) free. Show Answer Correct Answer: A) (A) small; (B) open; (C) integrated; (D) free. 21. Saving in the economy: A) Occurs when current spending is less than current incomes. B) Is generally not a determinant of future output. C) And investment are essentially the same concept. D) Occurs when current consumption is more than current output. Show Answer Correct Answer: A) Occurs when current spending is less than current incomes. 22. Which is NOT one of the four basic economic questions? A) What to produce?. B) Who is to produce?. C) How much will it cost?. D) How to produce?. E) For whom to produce?. Show Answer Correct Answer: C) How much will it cost?. 23. A disease has been affecting banana crops, and at the same time, consumers learn that bananas cure baldness. What will happen to the price and quantity of bananas? A) Price and quantity will rise. B) Price will rise, while the quantity will fall. C) Price will fall, while quantity change is unknown. D) Price will rise, while the quantity change is unknown. Show Answer Correct Answer: D) Price will rise, while the quantity change is unknown. 24. An increase in which of the following will increase aggregate demand? A) Government spending. B) Taxes. C) The discount rate. D) The federal funds rate. E) Reserve requirements. Show Answer Correct Answer: A) Government spending. 25. What does inflation refer to in an economy? A) Decrease in overall prices. B) Increase in overall prices. C) Stagnant prices. D) Unchanged prices. Show Answer Correct Answer: B) Increase in overall prices. 26. Which of the following would be classified as fiscal policy? A) A state government cuts taxes to help the economy of the state. B) The Federal Reserve cuts interest rates to stimulate the economy. C) The federal government passes tax cuts to encourage firms to reduce air pollution. D) The federal government cuts taxes to stimulate the economy. Show Answer Correct Answer: D) The federal government cuts taxes to stimulate the economy. 27. Referring to the Keynesian curve, in the 'Keynesian Range' ..... A) Real GDP is low, price level is constant, and unemployment is high. B) Real GDP is high but falling, price level is falling, and unemployment is rising. C) Real GDP is rising, price level is rising, and unemployment is falling. D) Real GDP is at its peak, price level consistently rises, and unemployment is low. Show Answer Correct Answer: A) Real GDP is low, price level is constant, and unemployment is high. 28. Which of the following is true of the meaning of government budget surplus? A) Government revenue equals government expenditure. B) Government revenue is greater than government expenditure. C) Government revenue is less than government expenditure. D) All the points are correct. Show Answer Correct Answer: B) Government revenue is greater than government expenditure. 29. If you lose your job in this country you can claim unemployment and collect money to help you until you can find another job. This is because of economic A) Security. B) Growth. C) Freedom. D) Equity. Show Answer Correct Answer: A) Security. 30. Spending about which lawmakers are free to make choices, such as defense and education A) Mandatory spending. B) Discretionary spending. C) Entitlements. D) Tariffs. Show Answer Correct Answer: B) Discretionary spending. ← 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