This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 148 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 148 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A ..... is a situation in which conventional monetary policy is ineffective because nominal interest rates are up against the zero bound. A) Liquidity Trap. B) Solidity Trap. C) Illiquidity Trap. D) None of above. Show Answer Correct Answer: A) Liquidity Trap. 2. Monetary policy:increase in M A) Shifts LM curve to right. B) Shifts LM curve to left. C) Shifts IS curve to left. D) Shifts IS curve to right. Show Answer Correct Answer: A) Shifts LM curve to right. 3. An increase in price and the fall of purchasing power is known as? A) Recession. B) Hyperinflation. C) Deflation. D) Inflation. Show Answer Correct Answer: D) Inflation. 4. It delivers public goods and services to the people. A) GOVERNMENT. B) INTERNATIONAL TRADE. C) FIRMS. D) HOUSEHOLDS. E) BANKS. Show Answer Correct Answer: A) GOVERNMENT. 5. Is this counted in the GDP of the US?The materials (lumber, cement, bricks) used to build a house. A) Yes. B) No. Show Answer Correct Answer: B) No. 6. What monetary policy would the Federal Reserve adopt to control inflation? A) Lowering federal tax rates. B) Increasing the supply of money. C) Lowering the supply of money. D) Increasing federal tax rates. Show Answer Correct Answer: C) Lowering the supply of money. 7. How many approaches in calculating national income? A) 3. B) 4. C) 1. D) 2. Show Answer Correct Answer: A) 3. 8. A factory, including all the machines within it, that refines steel from raw iron would be an example of which of the following Factors of Production? A) Land. B) Labor. C) Capital. D) Entrepreneurship. Show Answer Correct Answer: C) Capital. 9. Slick Stan wants to bring a well known shoe shining company to Springfield. What type of business ownership would this be? A) Non-profit. B) Partnership. C) Manufacturing. D) Franchise. Show Answer Correct Answer: D) Franchise. 10. The period in the cycle from peak to trough A) Business cycle. B) Recession. C) Expansion. D) Hyperinflation. Show Answer Correct Answer: B) Recession. 11. The following statements are true EXCEPT A) Frictional unemployment occurs for a temporary period only. B) Structural unemployment occurs because of lack skills in labour. C) Seasonal unemployment exists because some labour quit their job and search for another job. D) Cyclical unemployment is a serious problem for any country and it exists because some labour has lost their jobs during a recession. Show Answer Correct Answer: C) Seasonal unemployment exists because some labour quit their job and search for another job. 12. One population trend that is impacting the budget process is A) Increasing number of early retirees under the age of 65. B) A wave of new babies being born. C) The increased life expectancy of the Baby Boomers. D) A rising number of citizens in the 18-45 age range. Show Answer Correct Answer: C) The increased life expectancy of the Baby Boomers. 13. Match this definition with the correct Mixed Economic System: "Property is collectively owned by the government or the society (rather than by private citizens), so that all have their basic needs met." A) Communism. B) Capitalism. C) Socialism. D) I give up. Show Answer Correct Answer: A) Communism. 14. The government raises taxes or decreases spending, what policy is being exercised? A) Expansionary Fiscal Policy. B) Expansionary Monetary Policy. C) Contractionary Fiscal Policy. D) Contractionary Monetary Policy. Show Answer Correct Answer: C) Contractionary Fiscal Policy. 15. Which of the following is not a component of domestic income? A) Operating Surplus. B) Net factor income from abroad. C) Compensation of employees. D) A. Mixed-income. Show Answer Correct Answer: B) Net factor income from abroad. 16. The Wall Street Reform and Consumer Protection Act of 2010, aka Dodd-Frank, is an example of: A) Fiscal Policy. B) Regulatory Policy. C) International Trade Policy. D) Monetary Policy. Show Answer Correct Answer: B) Regulatory Policy. 17. Which of the following sectors has the highest contribution in the GDP of India? A) Financial Services & Professional Services. B) Manufacturing. C) Agriculture. D) Construction. Show Answer Correct Answer: A) Financial Services & Professional Services. 18. Which is the type of business that does not require workers to join a union, but does require them to pay union dues to help pay for collective bargaining costs? A) Modified Union Shop. B) Closed Shop. C) Union Shop. D) Agency Shop. Show Answer Correct Answer: D) Agency Shop. 19. Why will government have to change taxes by a larger magnitude than they would change spending. A) Some spending leaks out of the economy through international trade. B) Some portions of tax cuts are saved and not spent. C) Government spending is too inefficient a process. D) Tax cuts are always superior to government spending. Show Answer Correct Answer: B) Some portions of tax cuts are saved and not spent. 20. Gross Domestic Product (GDP) ONLY refers to the total value of FINAL goods and services produced in a country in one year A) False. B) True. Show Answer Correct Answer: B) True. 21. In which part of the GDP calculation does this fit? You spend $ 15 at AMC to see the latest Avengers movie. A) Government spending. B) Investment spending. C) Net exports. D) Consumer spending. Show Answer Correct Answer: D) Consumer spending. 22. When measuring GDP we measure A) The value of all profits made by firms. B) The value of all taxes paid by people. C) The value of all output of final goods and services. D) The value of all salaries earned by people. Show Answer Correct Answer: C) The value of all output of final goods and services. 23. TRUE or FALSE:Gross investment in fixed assets can be positive, negative, or zero. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 24. A market that is closed to foreign companies; goods and services produced in other countries may not be offered for sale A) Open market. B) Blocked market. C) Closed market. D) Safe market. Show Answer Correct Answer: C) Closed market. 25. What is NOT a consequence of expansionary fiscal policy? A) Increased unemployment. B) Increased Price levels. C) AD shifts Right. D) Increased output. Show Answer Correct Answer: A) Increased unemployment. 26. The U.S. Government hired 10 Chinese-language experts, from a Chinese company based in Thailand, to train U.S. Workers ..... what will be effect in US economy? A) GDP increases. B) GNP increases. C) GDP decreases. D) No change. Show Answer Correct Answer: A) GDP increases. 27. Capital is a resource and investment is a flow. A) True. B) Lie. Show Answer Correct Answer: A) True. 28. Suppose a significant hurricane damages a coastal region with a large oil refining industry. What would be the most likely effect of this damage in the AD/AS model? A) The AD curve would shift to the right. B) The AD curve would shift to the left. C) The AS curve would shift to the right. D) The AS curve would shift to the left. E) Both the AD and AS curves would shift. Show Answer Correct Answer: D) The AS curve would shift to the left. 29. The export tea is the microeconomics A) False. B) True. Show Answer Correct Answer: A) False. 30. If aggregate real output is growing faster than the total population, then: A) Real GDP per capita is rising. B) The standard of living is declining. C) The national income is falling. D) Nominal GDP per capita is falling. E) The national income per capita is falling. Show Answer Correct Answer: A) Real GDP per capita is rising. ← 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