This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 143 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 143 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Accommodating items are undertaken to Maintain the balance in BOP account. A) False. B) True. Show Answer Correct Answer: B) True. 2. Which of the following would tend to increase aggregate demand? A) A reduction in the overall wealth of the society. B) Pessimistic expectations about the future. C) A reduction in the money supply. D) A reduction in tax rates. Show Answer Correct Answer: D) A reduction in tax rates. 3. What does the unemployment rate measure? A) How many people want a job but can't find one, expressed as a percentage. B) The number of people who are retired. C) The number of people with part-time jobs. D) The number of people who have never worked. Show Answer Correct Answer: A) How many people want a job but can't find one, expressed as a percentage. 4. Companies most likely have a well-defined supply function when the marketstructure is: A) Oligopoly. B) Perfect competition. C) Monopolistic competition. D) None of above. Show Answer Correct Answer: B) Perfect competition. 5. Equality between aggregate expenditure and aggregate output implies that thegovernment's fiscal deficit must equal: A) Private saving-Investment-Net exports. B) Private saving-Investment + Net exports. C) Investment-Private saving + Net exports. D) None of above. Show Answer Correct Answer: A) Private saving-Investment-Net exports. 6. When the number of sellers increases in an economy what increases? A) Supply. B) Competition. C) Production. D) All of the above. Show Answer Correct Answer: D) All of the above. 7. Which of the following is the most fundamental issue that economics address? A) Use of scarce resources. B) Promotion of privatization. C) Reduction of budget deficits. D) Choice of appropriate technolofy. Show Answer Correct Answer: A) Use of scarce resources. 8. Nonworking people who are capable of working but have given up looking for a job due to the state of the job market A) Discouraged Workers. B) Underemployed Workers. C) Market Basket. D) Labor Force. Show Answer Correct Answer: A) Discouraged Workers. 9. The number of people working 40 hours or more per week and still wanting additional work. A) Underemployment. B) Invisible underemployment. C) Visible underemployment. D) Unempoyedment. Show Answer Correct Answer: B) Invisible underemployment. 10. The ..... shows the relationship between the quantity of money demanded and the interest rate. A) Money Demand Curve. B) Money Supply Curve. C) Loanable Funds Market. D) Fisher Effect. Show Answer Correct Answer: A) Money Demand Curve. 11. When a neutral party works with two opposing parties to sort out their differences A) Arbitration. B) Mediation. C) Outsourcing. D) Collective Bargaining. Show Answer Correct Answer: B) Mediation. 12. Which of the following is not an approach to the calculation of GDP? A) Export Approach. B) Expenditure Approach. C) Income Approach. D) Value-Added Approach. Show Answer Correct Answer: A) Export Approach. 13. The real interest rate for a consumer loan is 5 percent, and the expected inflation rate is 2 percent. What is the nominal interest rate on the consumer loan? A) 10 percent . B) 5 percent. C) 2.5 percent. D) 3 percent. E) 7 percent. Show Answer Correct Answer: E) 7 percent. 14. To promote higher economic growth, the best way is to A) Decrease government spending and increase taxation. B) Decrease government spending and decrease taxation. C) Increase government spending and decrease taxation. D) Increase government spending and increase taxation. Show Answer Correct Answer: C) Increase government spending and decrease taxation. 15. If Government spending decreases, which of the following occurs? A) Real GDP increases and price level increases. B) Real GDP decreases and price level increases. C) Real GDP increases and price level decreases. D) Real GDP decreases and price level decreases. Show Answer Correct Answer: D) Real GDP decreases and price level decreases. 16. A government announces major cuts to individual and corporate taxes. What is the government likely seeking to achieve? A) To reduce the level of inflation. B) To increase export activity. C) To improve productive efficiency. D) To promote full employment. Show Answer Correct Answer: D) To promote full employment. 17. Which one of the following is NOT likely to be a result of deflation? A) Menu costs will increase. B) Uncertainty will increase. C) Wealth will be redistributed from creditors to debtors. D) People on fixed pensions will see the value of their pensions increase. E) People will be more likely to postpone major purchases. Show Answer Correct Answer: C) Wealth will be redistributed from creditors to debtors. 18. TRUE or FALSE:A "marginally attached worker" is someone who wants a job, has looked for work in the past year, but has not looked for work in the past four weeks. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 19. Work that is temporary or part-time A) Independent Contractors. B) Wages. C) Full Employment. D) Contingent Employment. Show Answer Correct Answer: D) Contingent Employment. 20. Which of the following is a supply-side policy aimed at reducing costs for businesses? A) Increasing government spending. B) Increasing interest rates. C) Reducing tax rates. D) Implementing price controls. Show Answer Correct Answer: C) Reducing tax rates. 21. The Inflation is a macroeconomic indicator, it refers to the porcentage of the population that is:looking for a job, out of work, and/or willing to work A) False. B) True. Show Answer Correct Answer: A) False. 22. Which one of the following is the best explanation of macroeconomics? A) The study of economics. B) The study of decisions that businesses and individuals make in the marketplace. C) The study of the global economy. D) The study of economic phenomena that affects an entire economy. Show Answer Correct Answer: D) The study of economic phenomena that affects an entire economy. 23. Katia is an accountant in a government run business where she was placed after graduation. A) Command. B) Traditional. C) Free Market. D) Mixed. Show Answer Correct Answer: A) Command. 24. Which of the following would be included in Gross Private domestic Investment (GDPI) A) Investments by firms and households on stocks, bonds, and other financial assets. B) Investments by households on education and training. C) Investments by firms on machinery, tools, and equipment. D) Investments by government on long-lived projects like dams, highways, and bridges. Show Answer Correct Answer: C) Investments by firms on machinery, tools, and equipment. 25. Fiscal policy:tax increase A) Shifts IS curve to left. B) Shifts LM curve to right. C) Shifts LM curve to left. D) Shifts IS curve to right. Show Answer Correct Answer: A) Shifts IS curve to left. 26. With what kinds of topics does macroeconomics concern itself? A) Economic activities of individual firms, households, and other organizations. B) Forces of supply and demand in a particular market. C) Consumer behavior and firms output decisions. D) Aggregate economic phenomena like the rate of unemployment and inflation. Show Answer Correct Answer: D) Aggregate economic phenomena like the rate of unemployment and inflation. 27. Increase in the stock of capital is know as: A) Capital loss. B) Capital gain. C) Capital formation. D) None of these. Show Answer Correct Answer: C) Capital formation. 28. What happens when you increase the supply of money in a country? A) Decreases interest rates, increases consumption and investment, and increases aggregate demand. B) Increases interest rates, decreases consumption and investment, and decreases aggregate demand. Show Answer Correct Answer: A) Decreases interest rates, increases consumption and investment, and increases aggregate demand. 29. When are taxes (generally) due? A) April 1st. B) February 11th. C) April 15th. D) January 25th. Show Answer Correct Answer: C) April 15th. 30. Cost of inflation antara lain ..... A) Shoeleather cost. B) Semua salah. C) Menu price. D) Seigniorage. Show Answer Correct Answer: A) Shoeleather cost. ← 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