This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 139 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 139 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which statement best describes corporations in the United States? A) They exist only for as long as their founders live. B) They are legal organizations with the right to own property. C) Shareholders are personally liable for corporate losses. D) Shareholders must get approval to sell their stock. Show Answer Correct Answer: B) They are legal organizations with the right to own property. 2. A deficit in the United States trade balance can be described as A) An excess of the value of exports over the value of imports. B) An almost complete depletion of the gold stock. C) A resulting outcome of the depreciation of the United States dollar in foreign exchange markets. D) An excess of receipts from foreigners over payments to foreigners. E) An excess of the value of imports over the value of exports. Show Answer Correct Answer: E) An excess of the value of imports over the value of exports. 3. The example of machinery in a factory is an example of which of the 4 factors of production? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: C) Capital. 4. Workers at the community Swim center will experience what type of unemployment? A) Seasonal. B) Frictional. C) Structural. D) Cyclical. Show Answer Correct Answer: A) Seasonal. 5. A sum of money, sufficient to support a decent standard of living, given to every person in society, regardless of their need or existing wealth A) Universal Job Guarantee (UJG). B) Universal Basic Services (UBS). C) Universal Basic Income (UBI). D) Democratic Socialism. Show Answer Correct Answer: C) Universal Basic Income (UBI). 6. Households' decision to buy less rice reduced the profit of rice farmers. Which branch of economics covers the changes to the rice farmers profits? A) Macroeconomics. B) Microeconomics. Show Answer Correct Answer: B) Microeconomics. 7. How will a contractionary fiscal policy affect a budget deficit? A) Grow the deficit. B) Shrink the deficit. C) Not affect it. D) Change monetary policy. Show Answer Correct Answer: B) Shrink the deficit. 8. Potential GDP is NOT one of the following. A) GDP at full employment. B) GDP when all resources employed are at full capacity. C) Actual GDP. D) GDP when resources are all used up. Show Answer Correct Answer: C) Actual GDP. 9. A decrease in the demand for tomatoes increases the equilibrium price and decreases the equilibrium quantity. A) True. B) False. Show Answer Correct Answer: B) False. 10. What is the equation of GDP? A) C + I + (X+N). B) C + I + G. C) C + I + G + (X-N). D) C + G + U + (X+N). Show Answer Correct Answer: C) C + I + G + (X-N). 11. Which best describes a state sales tax on all retail purchases? A) Progressive tax. B) Proportional tax. C) Regressive tax. D) None of above. Show Answer Correct Answer: C) Regressive tax. 12. Which of the following is true of the meaning of balanced government budget balance? 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: A) Government revenue equals government expenditure. 13. The natural rate of unemployment in Mithrim is 5%, and the current rate of unemployment is 2%. Also, the consumer price index (CPI) has been increasing rapidly.Which of the following combinations of monetary and fiscal policy would be appropriate to return this economy to full employment? A) Increasing taxes; increasing government spending. B) Decreasing taxes; buy bonds. C) Increasing taxes; lower the discount rate. D) Increase government spending; sell bonds. E) Increasing taxes; open market sales. Show Answer Correct Answer: E) Increasing taxes; open market sales. 14. Which of the following is NOT measured in GDP? A) Illegal narcotics sales. B) Selling produce. C) Running a plumbing business. D) Buying an American-made car. Show Answer Correct Answer: A) Illegal narcotics sales. 15. The ..... Interest Rate is the interest rate actually paid for a loan, whereas the ..... Interest Rate is the nominal interest rate minus the rate of inflation. A) Real; Nominal. B) Nominal; Real. Show Answer Correct Answer: B) Nominal; Real. 16. Which of the following is a major influence on AS? A) Consumption. B) The quality of the factors available. C) Government spending. D) None of above. Show Answer Correct Answer: B) The quality of the factors available. 17. What is the amount of a good or service that consumers are willing and able to purchase at a given price called? A) Quantity supplied. B) Quota. C) Quantity demanded. D) Supply. Show Answer Correct Answer: C) Quantity demanded. 18. It is the continuing increase of the general price level in the market. A) Deflation. B) Stagflation. C) Recession. D) Inflation. Show Answer Correct Answer: D) Inflation. 19. Macroeconomics is a study of economics that deals with 4 major factors ; A) Household, firms, government, and demand-supply. B) Household, firms, government and external factor. C) Firms, government, free-market, and regulations. D) None of the above. Show Answer Correct Answer: B) Household, firms, government and external factor. 20. Which part below is responsible for determining the monetary policy to control the amount of money in the economic system A) Ministry of Finance. B) Central bank. C) Foreign Commercial Bank of Laos Mass. D) Ministry of Industry and Trade. Show Answer Correct Answer: B) Central bank. 21. In 2011, Canada provided 24% of U.S. crude oil imports. What effect would a tariff on Canadian oil have on the U.S. economy? A) Demand for fuel efficient cars would increase. B) Demand for alternative fuels would decrease. C) Transportation costs would decrease. D) Production of trucks would increase. Show Answer Correct Answer: A) Demand for fuel efficient cars would increase. 22. ..... is the use of monetary and fiscal policy to smooth out the business cycle. A) Discretionary Monetary Policy. B) Macroeconomic Policy Activism. C) Political Business Cycle. D) Monetary Policy Rule. Show Answer Correct Answer: B) Macroeconomic Policy Activism. 23. What is the difference between a ROTH and a traditional retirement account? A) ROTH contributions are after-tax, while traditional retirement contributions are before tax. B) ROTH contributions are pre-tax, while traditional retirement contributions are after tax. C) ROTHs are for people who want a traditional retirement. D) None of above. Show Answer Correct Answer: A) ROTH contributions are after-tax, while traditional retirement contributions are before tax. 24. Which of the following is not the source of supply of foreign exchange A) Imports. B) Remittances from abroad. C) Investment by foreign countries. D) Exports. Show Answer Correct Answer: A) Imports. 25. Which of the following items raises the supply of foreign exchange? A) Imports of Goods from china. B) Indian students going to USA for MBA. C) Donation of 50mn$ received from Microsoft. D) Purchase of land in England. Show Answer Correct Answer: C) Donation of 50mn$ received from Microsoft. 26. What typically happens to consumer & business spending when interest rates go up? A) Both types of spending increase. B) Consumer spending increases & business spending decreases. C) Both types of spending decrease. D) Business spending increases & consumer spending decreases. Show Answer Correct Answer: C) Both types of spending decrease. 27. Discouraged workers:some people are no longer looking for a job because they have given up. Underemployed workers:Someone who wants more hours but can't get them is still considered employed A) Zero percent unemployment is not our goal. B) US is at full employment. C) Labor Force Participation Rate. D) Criticisms of the unemployment rate. Show Answer Correct Answer: D) Criticisms of the unemployment rate. 28. A leftward shift of the supply curve for computers could be caused by which of the following in the short run? A) A decrease in the number of computer manufacturers. B) A decrease in the price of components used to assemble computers. C) An increase in the price of mobile devices, a substitute good. D) A decrease in the price of computers. E) A decease in taxes on computer manufacturers. Show Answer Correct Answer: A) A decrease in the number of computer manufacturers. 29. Which economic system are all resources privately owned and the buyers and sellers answer the three economic questions? A) Traditional. B) Command. C) Market. D) Mixed. Show Answer Correct Answer: C) Market. 30. The American standard toilet is the microeconomics A) False. B) True. Show Answer Correct Answer: A) False. ← 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