This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 146 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 146 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A graph showing the quantity demanded A) Demand curve. B) Marginal utility. C) Demand. D) None of above. Show Answer Correct Answer: A) Demand curve. 2. Money or Loan Multiplier = A) 1/ER. B) 1/rr. C) RR. D) 1/DD. Show Answer Correct Answer: B) 1/rr. 3. Microeconomics is the study of A) Relatively small-scale units, markets and decisions taken by individuals within an economy. B) Relatively large-scale units, markets and decision taken by groups of individuals within an economy. Show Answer Correct Answer: A) Relatively small-scale units, markets and decisions taken by individuals within an economy. 4. The owners of a corporation are called A) Directors. B) Partners. C) Shareholders. D) Founders. Show Answer Correct Answer: C) Shareholders. 5. Nominal GDP is not a good measure of economic output. Why? A) Nominal GDP does not adjust for price changes over time. B) Nominal GDP does not capture true economic activity. C) Nominal GDP is not able to be used to make international comparisons. D) None of above. Show Answer Correct Answer: A) Nominal GDP does not adjust for price changes over time. 6. The total cost is the market value of the inputs a firm uses in production A) False. B) True. Show Answer Correct Answer: B) True. 7. If the economy is suffering from extremely high rate of inflation, which of the following fiscal policies would be an appropriate strategy for the economy? A) Increase government spending and decrease taxes. B) Decrease government spending and increase taxes. C) Increase government spending with no change in taxes. D) The National Reserve increases the discount rate. E) Decrease taxes with no change in government spending. Show Answer Correct Answer: B) Decrease government spending and increase taxes. 8. What does government provide with the revenue it takes in from taxes? A) Headaches. B) Public goods and services. C) More Congressmen. D) Greater control of the media. Show Answer Correct Answer: B) Public goods and services. 9. A monopoly's prices are determined by A) Competing firms. B) The monopoly itself. C) Market equilibrium. D) Perfect competition. Show Answer Correct Answer: B) The monopoly itself. 10. When a change in some economic factor ( other than price) causes a different quantity to be demanded by a company at every price A) Excess demand. B) Shift in supply. C) Shift in demand. D) Shortage. Show Answer Correct Answer: C) Shift in demand. 11. Given a stationary short run aggregate supply curve, a reduction in aggregate demand will tend to A) Decrease the level of equilibrium GDP and the overall price level. B) Increase the level of equilibrium GDP and the overall price level. C) Increase the level of equilibrium GDP but decrease the overall price level. D) Decrease the level of equilibrium GDP but increase the overall price level. Show Answer Correct Answer: A) Decrease the level of equilibrium GDP and the overall price level. 12. Price Stability is the interest in A) Maintaining low inflation. B) Locking prices on key goods through regulation. C) The market equilibrium point. D) Aggregate demand. Show Answer Correct Answer: A) Maintaining low inflation. 13. Wages are governed by what two primary forces: A) Government and Economy. B) Workers and Employers. C) Supply and Demand. D) Corona and Virus. Show Answer Correct Answer: C) Supply and Demand. 14. A consumer walks into a Walmart to purchase original Sun Chips. Unfortunately, the manager tells the consumer that they are out of stock and to come back another day to purchase the Sun Chips. This is an example of? A) Scarcity. B) Incentives. C) Needs. D) Shortage. E) None of the above. Show Answer Correct Answer: D) Shortage. 15. Which situation suits best for frictional unemployment? A) An employee resigns to find better job with higher pay and good environment. B) An employee is laid off due to economic structure changes in the country. C) An individual left its career to become full time homeless. D) An individual is given break during employment. Show Answer Correct Answer: A) An employee resigns to find better job with higher pay and good environment. 16. What is the alternative name for microecnomics? A) Income and Employment theory. B) Price theory. Show Answer Correct Answer: B) Price theory. 17. Difference between Real and Nominal GDP is A) Measured by excluding some of the sectors. B) That real GDP is always smaller than Nominal GDP. C) Change in price level from base year to current year. D) None of the above. Show Answer Correct Answer: C) Change in price level from base year to current year. 18. TRUE or FALSE:If the ECB decreased its target inflation rate, the AD curve would shift downward. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 19. The following is one way for Indonesia to get out of hyperinflation, namely..... A) Carrying out a revaluation of the Rupiah to further increase competitiveness and exports. B) Prepare a balanced APBD. C) Initiate large project development plans in the context of equitable distribution of infrastructure. D) Making changes to fiscal policy, the deficit is financed through foreign loans. Show Answer Correct Answer: D) Making changes to fiscal policy, the deficit is financed through foreign loans. 20. What is monetary policy and how does it affect the economy? A) Monetary policy refers to the actions taken by the government to control the money supply and interest rates in an economy. It affects the economy by influencing borrowing costs, investment levels, inflation, and overall economic growth. B) Monetary policy is the process of printing more money to stimulate economic growth. It affects the economy by increasing the money supply and causing inflation. C) Monetary policy is the government's plan to regulate the stock market and ensure stability. It affects the economy by controlling stock prices and investor confidence. D) Monetary policy refers to the actions taken by a central bank to control the money supply and interest rates in an economy. It affects the economy by influencing borrowing costs, investment levels, inflation, and overall economic growth. Show Answer Correct Answer: D) Monetary policy refers to the actions taken by a central bank to control the money supply and interest rates in an economy. It affects the economy by influencing borrowing costs, investment levels, inflation, and overall economic growth. 21. All of the following are part of the 4 factors of production EXCEPT A) Land. B) Labor. C) Food. D) Capital. E) Enterpreneurship. Show Answer Correct Answer: C) Food. 22. -???????-A large number of buyers and sellers.-Products must have the same quality.-No major barriers to entering market-A free exchange of price information Which heading best completes the above chart? A) Monopoly. B) Perfect competition. Show Answer Correct Answer: B) Perfect competition. 23. If the MPS is 0.60, MPC A) Cannot be determined by the given information. B) Is 0.40. C) Is 1.60. D) Is 0.30. Show Answer Correct Answer: B) Is 0.40. 24. Why do business cycles occur? A) Due to government regulations. B) Due to individual decision making. C) Due to technological progress. D) Due to changes in market demand. Show Answer Correct Answer: B) Due to individual decision making. 25. Which statement(s) is/are correct regarding revenue expenditure? A) They create assets. B) They create liability. C) They reduce liability. D) They do not create assets. Show Answer Correct Answer: D) They do not create assets. 26. The government is responsible for ..... policy. A) Monetary. B) Fiscal. Show Answer Correct Answer: B) Fiscal. 27. If policy makers are concerned about inflation, which fiscal and monetary policies would be MOST effective? A) Lowering taxes and buying bonds. B) Lowering taxes and raising the reserve requirement. C) Increasing taxes and lowering the discount rate. D) Increasing taxes and selling bonds. Show Answer Correct Answer: D) Increasing taxes and selling bonds. 28. Supposed typical worker in France can produce 32 units of product in an eight hour day, while a typical worker in Germany can produce 30 units of product in a 10 hour day. We can conclude that A) Work your productivity in Germany is higher than in France. B) The standard of living will likely be higher in France and in Germany productivity is four units per hour for the German worker and three units for the french worker. C) Productivity is four units per hour for the German worker in three units per hour for the french worker. D) There will be no difference between a standard of living in France and Germany. E) The standard of living will likely be higher in Germany than in France. Show Answer Correct Answer: B) The standard of living will likely be higher in France and in Germany productivity is four units per hour for the German worker and three units for the french worker. 29. People who are 16 or older who are employed or actively looking for and available to do work. A) Telecommuting. B) Outsourcing. C) Independent Contractor. D) Civilian Labor Force. Show Answer Correct Answer: D) Civilian Labor Force. 30. An increase in which of the following would cause an outward shift of the PPC for consumer goods and capital goods? A) An increase in the demand for consumer goods. B) An increase in taxes on consumers. C) A decrease in unemployment. D) An increase in the resources to produce capital goods. E) The efficient production of consumer goods. Show Answer Correct Answer: D) An increase in the resources to produce capital goods. ← 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