This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 145 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 145 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. All, or everything A) Aggregate. B) Inflation Rate. C) GDP. D) GDP Annual Growth Rate. E) Unemployment Rate. Show Answer Correct Answer: A) Aggregate. 2. All other things being equal, if an economy operating at the full employment level of output achieves a more efficient allocation of resources, the most likely outcome is that national income per head A) Will rise in real terms. B) Remains constant because of full employment. C) Will fall in real terms because of demand-pull inflation. D) Will be redistributed more equitably. Show Answer Correct Answer: A) Will rise in real terms. 3. The idea that individuals and businesses meet society's needs when they seek their own self-interest is an example of: A) The Invisible Hand. B) The Invisible Foot. C) The Invisible Man. D) None of above. Show Answer Correct Answer: A) The Invisible Hand. 4. The ..... is the interest rate that banks charge other banks for loans, as determined in the federal funds market. A) Federal Rate. B) Interest Rate. C) Loanable Rate. D) Federal Funds Rate. Show Answer Correct Answer: D) Federal Funds Rate. 5. An excess in the demand for labor A) Frictional. B) Employment. C) Unemployment. D) Structura. Show Answer Correct Answer: C) Unemployment. 6. How could the government increase employment with monetary policy? A) The government could increase the discount rate. B) The government could decrease the discount rate. C) The government could decrease government spending. D) The government could increase government spending. Show Answer Correct Answer: B) The government could decrease the discount rate. 7. Which does NOT describe a role of the Federal Reserve? A) To regulate & watch US banks. B) Keep the economy stable & healthy through Monetary Policy. C) Provide special financial services to banks. D) Decide whether or not to raise or lower US taxes. Show Answer Correct Answer: D) Decide whether or not to raise or lower US taxes. 8. Deflation occurs because AG < AS and sellers are forced to lower prices A) True. B) False. Show Answer Correct Answer: A) True. 9. When individuals are unemployed due to a change in season, e.g. Santa Claus after christmas. A) Seasonal Unemployment. B) Frictional Unemployment. C) Structural Unemployment. D) Cyclical Unemployment. Show Answer Correct Answer: A) Seasonal Unemployment. 10. Refusing to buy something to get your demands is called what? A) Going on strike. B) Picketing. C) Boycotting. D) Collective Bargaining. Show Answer Correct Answer: C) Boycotting. 11. The Phillips curve shows what type of relationship between inflation and unemployment? A) Symmetric. B) Negative. C) Parabolic. D) Positive. Show Answer Correct Answer: B) Negative. 12. The main policy goal of unemployment insurance is to reduce the ..... A) Amount of frictional unemployment. B) Role of unions in wage setting. C) Income uncertainty that workers face. D) Search effort of the unemployed. Show Answer Correct Answer: C) Income uncertainty that workers face. 13. Which of the following factors would NOT lead to an increase in saving? A) A rise in interest rates. B) An increase in the tax free allowance applying to interest paid on saving. C) An increase in the rate of inflation. D) Government proposals to introduce a new ISA (tax free saving account) for under 40s. Show Answer Correct Answer: C) An increase in the rate of inflation. 14. Which of the following terms refers to goods and services brought into the US from other countries to sell to American consumers? A) Exports. B) GDP. C) Imports. D) Factors of Production. Show Answer Correct Answer: C) Imports. 15. The part of the business cycle where unemployment starts to rise is: A) Boom. B) Recovery. C) Recession. D) Peak. Show Answer Correct Answer: C) Recession. 16. Refers to the price at which sellers accept orders for spot or earliest delivery usually in small quantities. A) Retail price index. B) Wholesale price. C) Wholesale price index. D) Retail price. Show Answer Correct Answer: D) Retail price. 17. If earlier 1$ = Rs 60 and now 1$ = Rs 55, then A) Imports will rise. B) Imports will fall. C) Exports will fall. D) Both (a) and (c). Show Answer Correct Answer: D) Both (a) and (c). 18. The aggregate supply curve ..... A) Slopes up because the higher price level will increase domestic output. B) Slopes down because production costs decrease as output. C) Is positively sloped upward. D) Is perfectly inelastic. Show Answer Correct Answer: C) Is positively sloped upward. 19. The population of Country X is 250, 000, and the labor force is 200, 000 persons. If 175, 00 people are employed, what is the unemployment rate? A) 20%. B) 87.5%. C) 12.5%. D) 80%. E) 10%. Show Answer Correct Answer: C) 12.5%. 20. The most common measure of inflation in Australia is: A) Export Price Index (XPI). B) Consumer Price Index (CPI). C) Producer Price Index (PPI). D) Import Price Index (MPI). Show Answer Correct Answer: B) Consumer Price Index (CPI). 21. What is the difference between technical efficiency and economic efficiency? A) Technical efficiency is concerned with the maximum possible output given the resources available, while economic efficiency is concerned with allocating resources to their most valued use. B) Technical efficiency is concerned with minimizing the cost of production, while economic efficiency is concerned with maximizing profits. C) Technical efficiency is concerned with minimizing the use of resources, while economic efficiency is concerned with maximizing the output of goods and services. D) There is no difference between technical efficiency and economic efficiency. Show Answer Correct Answer: A) Technical efficiency is concerned with the maximum possible output given the resources available, while economic efficiency is concerned with allocating resources to their most valued use. 22. All of the ten fastest-growing occupations are service related, most of them in the area of medical services. This would be the ..... Sector A) Tertiary. B) Primary. C) Secondary. D) Quaternary. Show Answer Correct Answer: A) Tertiary. 23. What condition differentiates a market of pure competition from one of monopolistic competition? A) Products. B) Firms. C) Competition. D) Price. Show Answer Correct Answer: A) Products. 24. A market structure where many businesses sell an identical product but compete based on price ..... A) Pure or perfect competition. B) Monopolistic. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: A) Pure or perfect competition. 25. The three major normative macroeconomic goals do not include ..... A) Full employment. B) High levels of environmental quality. C) Sustained economic growth. D) Price level stability. Show Answer Correct Answer: B) High levels of environmental quality. 26. Work that requires advance skills and education A) Professional labor. B) Glass ceiling. C) Featherbedding. D) Labor union. E) Skilled labor. Show Answer Correct Answer: A) Professional labor. 27. Gross domestic product can be greater than net domestic product. A) True. B) Lie. Show Answer Correct Answer: A) True. 28. Which agency is tasked of creating Monetary policy? A) National Economic Development Authority. B) Department of Finance. C) Banko Sentral ng Pilipinas. D) Department of Budget and Management. Show Answer Correct Answer: C) Banko Sentral ng Pilipinas. 29. Which of the following are tools of fiscal policy? A) Taxes and government spending. B) Open market operations and reserve requirement. C) Taxes and open market operations. D) Open market operations and government spending. Show Answer Correct Answer: A) Taxes and government spending. 30. Work that requires specialized skills and training A) Professional labor. B) Labor union. C) Skilled labor. D) Glass ceiling. E) Featherbedding. Show Answer Correct Answer: C) Skilled labor. ← 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