This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 14 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. One of the main responsibilities of "The Fed" is to implement ..... policy. A) Monetary. B) Taxation. C) Spending. D) All of the Above. Show Answer Correct Answer: A) Monetary. 2. It consists of one or more individuals. They are the primary users of products or services. A) Government. B) People. C) CORPORATE. D) Household. Show Answer Correct Answer: D) Household. 3. Which of the following is NOT a role of a financial intermediary? A) Lends to borrowers. B) Accepts funds from savers. C) Sells bonds to investors. D) Receives deposits for checking accounts. E) These are all roles of a financial intermediary. Show Answer Correct Answer: C) Sells bonds to investors. 4. According to the ....., quantity demanded and price move in opposite directions. A) Law of demand. B) Demand curve. C) Demand schedule. D) Market demand. Show Answer Correct Answer: A) Law of demand. 5. These are physical goods that are used to produce other goods (example:trucks and trains to transport goods). A) Scarcity. B) Land. C) Capital. D) I have no clue. Show Answer Correct Answer: C) Capital. 6. Someone who buys things, most often with an exchange of money. A) Services. B) Producer. C) Goods. D) Consumer. Show Answer Correct Answer: D) Consumer. 7. A country's ....., or the ....., is its balance of payments on goods and services plus net international transfer payments and factor income. A) Balance of Payments on the Current Account; Current Account. B) Merchandise Trade Balance; Trade Balance. C) Balance of Payments on the Financial Account; Financial Account. D) Balance of Payments on Goods and Services; Goods and Services Account. Show Answer Correct Answer: A) Balance of Payments on the Current Account; Current Account. 8. Which of the following is NOT calculated into the Gross Domestic Product (GDP)? A) Government spending. B) Investment. C) Net exports. D) Aggregate supply. Show Answer Correct Answer: D) Aggregate supply. 9. What is a macroeconomic aim of a government? A) Unemployment. B) Income inequality. C) Deflation. D) Balance of payments stability. Show Answer Correct Answer: D) Balance of payments stability. 10. Barter refers to the direct exchange of one good and services to another goods and services. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 11. Which of these actions of the Federal Reserve can slow economic growth? A) The Federal Reserve regulates the amount of money that flows into and out of the nation's economy. B) The Federal Reserve buys securities, which puts money back into the hands of people who can spend it in the marketplace. C) The Federal Reserve decreases the reserve requirement and banks have more money to loan to people to save rather than to spend. D) The Federal Reserve increase the discount rate, which causes interest rates to rise and people to save rather than to spend. Show Answer Correct Answer: D) The Federal Reserve increase the discount rate, which causes interest rates to rise and people to save rather than to spend. 12. Which of the following is not a major source of funding for local and state governments? A) Property taxes. B) Sales taxes. C) Police fines. D) Intergovernment revenue. Show Answer Correct Answer: C) Police fines. 13. TRUE or FALSE:GDP growth in recent decades attributed to the movement of women into the labor force fails to account for the lost value of household production. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 14. What is frictional unemployment? A) Unemployment caused by a lack of demand for labor. B) Unemployment caused by technological advancements. C) Unemployment caused by graduating from high school college. D) Unemployment caused by a decrease in government spending . Show Answer Correct Answer: C) Unemployment caused by graduating from high school college. 15. Which of the following is NOT a key term in macroeconomics? A) Aggregate Demand (AD). B) Budget Deficit. C) Consumer Savings. D) Business Cycle. Show Answer Correct Answer: C) Consumer Savings. 16. Supply-side policies are often centred on: A) Raising inflation. B) Investing in capital-human and infrastructure. C) Changing the base rate of interest. D) Changing laws. Show Answer Correct Answer: B) Investing in capital-human and infrastructure. 17. All of these are functions of money EXCEPT A) Unit of measurement. B) Store of value. C) Commodity money. D) Medium of exchange. Show Answer Correct Answer: C) Commodity money. 18. Suppose the government institutes a major tax cut. Holding everything else constant, how would this change the position of the aggregate supply (AS) curve? A) The curve will shift down, but not to the right or left. B) The entire curve will shift to the left. C) The curve will shift up, but not to the right or left. D) The AS curve would not shift. E) The entire curve will shift to the right. Show Answer Correct Answer: D) The AS curve would not shift. 19. Monetary value of all final goods and services produced in one country but sold outside the country's borders minus the monetary value of all final goods and services produced outside the country's borders but sold within the country in a given time period. A) Government Spending. B) Net exports. C) Consumer Spending. D) Investment. Show Answer Correct Answer: B) Net exports. 20. What is a overseas sector? A) A sector used to describe the importance of imports and exports (trades). B) A sector used to describe the importance of population/immigrants. C) A sector used to describe the importance of the ocean. D) All of the above. Show Answer Correct Answer: A) A sector used to describe the importance of imports and exports (trades). 21. Why would a company need to issue stock? A) To show customers that it's successful. B) To stop the government from regulating it. C) To raise money. D) To increase its' customer base. Show Answer Correct Answer: C) To raise money. 22. What is money if it is available but only in a limited supply? A) Scarce. B) Portable. C) Divisible. D) Durable. Show Answer Correct Answer: A) Scarce. 23. Philips curve establishes relationship between A) Price and demand. B) Wage and money supply. C) Inflation and unemployment. D) Inflation and deflation. Show Answer Correct Answer: C) Inflation and unemployment. 24. Defined as " how limited resources are allocated to satisfy competing and unlimited wants " A) Economics. B) Market Economy. C) Microeconomics. D) Macroeconomics. Show Answer Correct Answer: A) Economics. 25. If the consumption function is C = 1, 000 +.8Y and Y is 20, 000, then the average propensity to consume is A) 0.75. B) 0.70. C) 0.8. D) 0.85. Show Answer Correct Answer: D) 0.85. 26. Private, open economy is represented by which of the following relationships A) C + I. B) C + I + G. C) C + I + NX. D) C + I + G + NX. Show Answer Correct Answer: C) C + I + NX. 27. The following are the costs of expected inflation (Cost of Expected Inflation), Except..... A) Surge Cost. B) Menu Cost. C) Tax Cost. D) Shoe Leather Cost. Show Answer Correct Answer: A) Surge Cost. 28. Which of the following is most appropriate about GDP as a measure of welfare? A) GDP is the single best measure of welfare. B) GDP is not used to measure welfare. C) GDP have some limitations as a measure of welfare. D) GDP is not at all a measure of welfare. Show Answer Correct Answer: C) GDP have some limitations as a measure of welfare. 29. A reduction in consumer confidence will likely have which of the following effects? A) A downward shift in the LM curve. B) A rightward shift in the IS curve. C) A leftward shift in the IS curve. D) An upward shift in the LM curve. Show Answer Correct Answer: C) A leftward shift in the IS curve. 30. Economic growth most unambiguously occurs when there are increases in ..... A) Potential real GDP. B) Aggregate demand. C) Federal budget surpluses. D) The population of a country. Show Answer Correct Answer: A) Potential real GDP. ← 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