This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 141 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 141 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the correct order of the phases of the economic cycle? A) ThroughEarly recoveryExpansionContractionPeak. B) Early recoveryPeakExpansionContractionThrough. C) Early recoveryExpansionPeakContractionThrough. D) Expansion Early recoveryPeak ContractionThrough. E) ThroughEarly recoveryExpansionPeakContraction. Show Answer Correct Answer: C) Early recoveryExpansionPeakContractionThrough. 2. Oligopolistic pricing strategy most likely results in a demand curve that is: A) Kinked. B) Vertical. C) Horizontal. D) None of above. Show Answer Correct Answer: A) Kinked. 3. Sources of funds for investment spending are: A) Consumption by households, government, and foreigners. B) Taxes and transfer payments. C) Always equal to U.S. spending on imports. D) Directed to their most productive uses by the U.S. government. E) Savings by households, government, and foreigners. Show Answer Correct Answer: E) Savings by households, government, and foreigners. 4. The aggregate demand curve is A) The total quantity of an economy's intermediate goods demanded at all price levels. B) The total quantity of an economy's intermediate goods demanded at a particular price level. C) The total quantity of an economy's final goods and services demanded at a particular price level. D) The total quantity of an economy's final goods and services demanded at different price levels. E) None of the above. Show Answer Correct Answer: D) The total quantity of an economy's final goods and services demanded at different price levels. 5. One unit of a particular currency must be able to buy the same amount of goods in all countries. A) Real exchange rate. B) Balanced trade. C) Nominal exchange rate. D) Purchasing power parity. Show Answer Correct Answer: D) Purchasing power parity. 6. Interventionist supply-side policies include A) Deregulation and privatization. B) Trade liberalization. C) Reduction in labor union power. D) Investment in human capita. Show Answer Correct Answer: D) Investment in human capita. 7. Which of the following represent real flow? A) Flow of goods. B) Flow of income. C) Flow of services. D) Flow of goods and services. Show Answer Correct Answer: D) Flow of goods and services. 8. ..... are the interest rates on financial assets that mature within a year. A) Short-Term Interest Rates. B) Long-Term Interest Rates. C) Mid-Term Interest Rates. D) None of above. Show Answer Correct Answer: A) Short-Term Interest Rates. 9. The economy is experiencing rapid inflation, pushing above 9%. which fiscal policy action should the government implement in an attempt to fix this problem? A) Raise taxes. B) Increase reserve requirements. C) Increase spending. D) Decrease Interest Rates. Show Answer Correct Answer: A) Raise taxes. 10. The supply curve of money is A) A horizontal line. B) A upward slope. C) A downward slope. D) A vertical line . Show Answer Correct Answer: D) A vertical line . 11. If demand for a good decreases when people's income increases A) The good is an inferior good. B) The law of demand is violated. C) The good is a normal good. D) The good's demand curve is upward sloping. Show Answer Correct Answer: A) The good is an inferior good. 12. What is the definition of the economic term Opportunity Cost? A) The price you pay to purchase something. B) The amount of debt you take on by making a decision. C) The value of the next best alternative that is given up due to the choice you made. D) The benefit you gain by making a decision. Show Answer Correct Answer: C) The value of the next best alternative that is given up due to the choice you made. 13. An increase in which of the following will cause an increase in the demand for a certain good? A) The number of sellers of the good. B) The number of buyers of the good. C) The price of the good. D) The cost of purchasing the good. E) The price of a complementary good. Show Answer Correct Answer: B) The number of buyers of the good. 14. Which of the following would cause the short-run aggregate supply curve to shift upward (to the left)? A) A decrease in the level of government spending. B) An increase in the economy's productive capacity. C) A reduction in the money supply. D) A general increase in raw materials prices. Show Answer Correct Answer: D) A general increase in raw materials prices. 15. The terms proportional, regressive, and progressive refer to ..... A) Benefit principle. B) Criteria for effective taxes. C) Types of taxes. D) Principles of taxation. Show Answer Correct Answer: C) Types of taxes. 16. True or False-The Federal Reserve is part of the Federal Open Market Committee which conducts monetary policy A) True. B) False. Show Answer Correct Answer: A) True. 17. If only the price for a good or service changes, does the demand curve shift? Why or why not? A) Yes, Price shifts the demand curve to the right because less people are being goods. B) Yes, Price shifts the demand curve to the left because more people are buying goods. C) No, Because price does not shift the curve. Price stays on the line. D) No, because price does not impact the points on the curve. E) Yes and No. The price shifts the curve sometimes, but not always. Show Answer Correct Answer: C) No, Because price does not shift the curve. Price stays on the line. 18. Which of the following is not a limitation of macroeconomics? A) Unable to study aggregate measurements pertaining to an economy. B) Models and theories are abstract and mathematical. C) Does not account for micro level differences. D) Prescribes policies that are too general to solve specific problems. Show Answer Correct Answer: A) Unable to study aggregate measurements pertaining to an economy. 19. If businesses become optimistic about the profitability of investments in an economy, which of the following will happen in the loanable funds market in the short run? A) The supply and demand for loanable funds will increase. B) The supply and demand for loanable funds will decrease. C) The demand for loanable funds by the private sector will decrease. D) The real interest rate will increase. E) The real interest rate will decrease. Show Answer Correct Answer: D) The real interest rate will increase. 20. A complement example would be all except A) Butter and margarine. B) Peanut-butter and jelly. C) Flashlight and batteries. D) Cameras and film. Show Answer Correct Answer: A) Butter and margarine. 21. The rise in the price of goods is called A) Unemployment Rate. B) Gross Domestic Product. C) Inflation. D) Consumer Price Index. Show Answer Correct Answer: C) Inflation. 22. When a tariff is imposed on a good imported from abroad A) The demand for good increases. B) The demand for the good decreases. C) The supply of the good increases. D) The supply of the good decreases. Show Answer Correct Answer: B) The demand for the good decreases. 23. The world market price of oil falls by 40%. Other things remaining the same, the impact on the UK economy is most likely to be A) An increase in aggregate demand and inflation. B) Deflation and lower output. C) Disinflation and higher output. D) Higher unemployment and inflation. Show Answer Correct Answer: C) Disinflation and higher output. 24. When the Federal Reserve lowers interest rates, hoping to jump-start the employment market, what does it hope it will accomplish with that monetary policy action? A) That the lower interest rates will reduce the money supply to lower inflation. B) That people will begin borrowing enough money so that they do not have to work. C) That enough people will stop borrowing money and increase spending to raise the GDP. D) That businesses will begin increasing investments, which in turn, will cause a need for more employees. Show Answer Correct Answer: D) That businesses will begin increasing investments, which in turn, will cause a need for more employees. 25. When revenue expenditure is greater than revenue receipts it is called A) Fiscal deficit. B) Primary deficit. C) Revenue deficit. D) None of these. Show Answer Correct Answer: C) Revenue deficit. 26. Identify the study concerned in macroeconomics A) Method of production and cost. B) The impact of wage reduction on agro-production. C) The reaction of Malaysian to the changes of petrol price. D) The general price levels. Show Answer Correct Answer: D) The general price levels. 27. When the demand for a product or service is higher than the supply this causes what? A) Equilibrium. B) Consumer. C) Surplus. D) Shortage. Show Answer Correct Answer: D) Shortage. 28. The ups and downs that the nation's economy goes through are officially referred to as A) The business cycle. B) A roller coaster. C) Economic indicators. D) Expansion. Show Answer Correct Answer: A) The business cycle. 29. What are the only two things consumers can buy in this world? A) Needs and wants. B) Goods and services. C) Physical capital and human capital. D) Products and items. E) None of the above. Show Answer Correct Answer: B) Goods and services. 30. If consumers become pessimistic, the economy is likely to experience a: A) Negative demand shock. B) Positive demand shock. C) Negative supply shock. D) Positive supply shock. Show Answer Correct Answer: A) Negative demand shock. ← 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