This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 149 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 149 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If 1 Dollar = RM 4.20 change to 1 Dollar = RM 3.50 in floating exchange market, what is the suitable term for this situation to the exchange rate? A) Depreciation. B) Overvalued. C) Appreciation. D) None of above. Show Answer Correct Answer: C) Appreciation. 2. Which of the following could explain the (immediate) shift shown in the graph below? A) A decrease in government spending. B) An increase in investor confidence. C) A fall in the ECB's target inflation rate. D) A beneficial supply shock. E) A fall in people's expectations of inflation. Show Answer Correct Answer: E) A fall in people's expectations of inflation. 3. If George keeps a part of his earnings as cash in the safety deposit box, then he is employing money as A) A store of value. B) A measure of value. C) A medium of exchange. D) None of the above. Show Answer Correct Answer: A) A store of value. 4. Total quantity of final goods and services producers in an economy are willing and able to supply at each price level A) Aggregate demand. B) Aggregate supply. Show Answer Correct Answer: B) Aggregate supply. 5. People use money to buy things and pay debts because they have agreed upon the money's worth. This function of money is called what? A) Medium of exchange. B) Unit of account. C) Store of value. D) Standard of value. Show Answer Correct Answer: D) Standard of value. 6. ..... guarantees that a bank's depositors will be paid even if the bank can't come up with the funds, up to a maximum amount per account. A) Bank Reserves. B) Discount Window. C) Deposit Insurance. D) Bank Run. Show Answer Correct Answer: C) Deposit Insurance. 7. The current rate of unemployment in Hamiltonia is 7%. Economists estimate that frictional unemployment is 4% and structural unemployment is 1%.Which of the following best describes the amount of cyclical unemployment in Hamiltonia and current output in the economy? A) Cyclical unemployment is 0%; output is equal to full employment output. B) Cyclical unemployment is 7%; output is equal to full employment output. C) Cyclical unemployment is 0%; output is less than full employment output. D) Cyclical unemployment is 2%; output is less than full employment output. E) Cyclical unemployment is 2%; output is more than full employment output. Show Answer Correct Answer: D) Cyclical unemployment is 2%; output is less than full employment output. 8. Real GDP is a measure of a country's A) Economic transactions. B) Money. C) Wealth. D) Physical output. Show Answer Correct Answer: D) Physical output. 9. If potential output is equal to actual aggregate output, which of the following is true? A) Interest rates are increasing. B) The economy is experiencing cyclical unemployment. C) The economy is experiencing inflation. D) The economy is in long-run equilibrium. Show Answer Correct Answer: D) The economy is in long-run equilibrium. 10. What are the key differences between microeconomics and macroeconomics? A) The key differences between microeconomics and macroeconomics are the methodologies used and the scope of study. B) The key differences between microeconomics and macroeconomics are the time frame analyzed and the level of detail. C) The key differences between microeconomics and macroeconomics are the focus on individual behavior and the impact on the overall economy. D) The key differences between microeconomics and macroeconomics are the level of analysis and the variables studied. Show Answer Correct Answer: D) The key differences between microeconomics and macroeconomics are the level of analysis and the variables studied. 11. Which of the following is correct concerning opportunity cost A) To compute opportunity costs you should subtract total benefits from total costs. B) Except for the extent that you pay more for them, opportunity, should not include the cost of things you would have purchased anyway. C) Opportunity cost in the idea of a trade-off are not closely related. D) To compute opportunity cost you should subtract marginal benefit from marginal costs. E) Rational people should compare various options without consider an opportunity costs. Show Answer Correct Answer: B) Except for the extent that you pay more for them, opportunity, should not include the cost of things you would have purchased anyway. 12. Unemployment caused by the changes in the skills needed by employers A) Frictional. B) Seasonal. C) Structural. D) Cyclical. Show Answer Correct Answer: C) Structural. 13. Which of the following is the formula to calculate GNP, based on the expenditure approach? A) GNP = C + I + G + (X + M). B) GNP = C + I + G + M-X. C) GNP = C + I + G + X + M. D) GNP = C + I + G-(M-X). Show Answer Correct Answer: D) GNP = C + I + G-(M-X). 14. Which of the following is NOT true of the Federal Reserve? A) It provides check-clearing services. B) It serves as a lender of last resort for member banks. C) It issues debit cards. D) It controls the money supply. E) It supervises member banks. Show Answer Correct Answer: C) It issues debit cards. 15. GDP per capita is found by dividing a country's GDP by it's A) Population. B) Average birth rates. C) Number of households. D) None of above. Show Answer Correct Answer: A) Population. 16. Which one of the following is characteristic of tariffs? A) They prevent the importation of goods from abroad. B) They specify the maximum amounts of specific commodities that may be imported during a given period of time. C) They offer protect domestic producers from foreign competition. D) They enable nations to reduce their exports and increase their imports during periods of recession. Show Answer Correct Answer: C) They offer protect domestic producers from foreign competition. 17. The money stock includes all of the following except ..... A) Metal coins. B) Bank balances accessible with debit cards. C) Paper currency. D) Lines of credit accessible with credit cards. Show Answer Correct Answer: D) Lines of credit accessible with credit cards. 18. What factors affect aggregate demand? A) Consumer spending, investment, government spending, and net exports. B) Weather conditions, natural disasters, and political stability. C) Population growth, technological advancements, and income levels. D) Interest rates, inflation, and exchange rates. Show Answer Correct Answer: A) Consumer spending, investment, government spending, and net exports. 19. When the economy is working properly, and at a normal rate of growth, the unemployment rate is usually around: A) 2-8 percent. B) 15-20 percent. C) 0-2 percent. D) 4-6 percent. Show Answer Correct Answer: D) 4-6 percent. 20. Which type of market structures has very few producers(companies) that control the majority of the market? Hint:think of the soda market A) Monopoly. B) Oligopoly. C) Perfect competition. D) Monopolistic competition. Show Answer Correct Answer: B) Oligopoly. 21. The board of seven appointed members who supervise the operations of the Federal Reserve and set policy is called the A) Board of Bankers. B) Board of Governors. C) Board of Trustees. D) Board of Regulators. Show Answer Correct Answer: B) Board of Governors. 22. Which one of the following is the best example of fiat money? A) Business stocks. B) A valuable painting. C) Dollar bills. D) Real estate. E) Gold coins. Show Answer Correct Answer: C) Dollar bills. 23. The slope of the consumption function is A) Equal to the MPC and is equal to 1. B) Equal to the MPC and is less than 1. C) Not equal to the MPC and is less than 1. D) Equal to the MPC and is greater than 1. Show Answer Correct Answer: B) Equal to the MPC and is less than 1. 24. If the government wants to reduce unemployment, government spending should be ..... A) Decrease. B) Increase. C) Constant. D) None of the above. Show Answer Correct Answer: B) Increase. 25. The use by the the government of a high interest rate policy as a counter inflationary device is based on the assumption that one of its effects will be to increase the A) Interest repayments on the national debt. B) Level of investment. C) Level of saving. D) Level of borrowing by private businesses. Show Answer Correct Answer: C) Level of saving. 26. Which of the following is considered as M2 money but not a component of M1 money? A) Term deposits of MNT. B) Foreign currency current account. C) Time deposit of MNT. D) All of the above are considered M2 money and not M1 money. Show Answer Correct Answer: B) Foreign currency current account. 27. Which of the following is included in the computation of gross domestic product? A) Government transfer payments, such as unemployment benefits. B) Purchases of used goods, such as used cars. C) Child care tasks performed by househusbands. D) Total value of business inventories. E) Additions to business inventories. Show Answer Correct Answer: E) Additions to business inventories. 28. Suppose a bank has a 10 percent reserve requirement, RM5, 000 in deposits, andhas loaned out all it can given the reserve requirement. A) It has RM50 in reserves and RM4, 950 in loans. B) It has RM500 in reserves and RM4, 500 in loans. C) It has RM555 in reserves and RM4, 445 in loans. D) None of the above is correct. Show Answer Correct Answer: B) It has RM500 in reserves and RM4, 500 in loans. 29. The leaders of a small country decide that they need to enact a contractionary fiscal policy. Which action is consistent with this fiscal policy? A) Reduce government spending. B) Lower its discount rate. Show Answer Correct Answer: A) Reduce government spending. 30. Governments can choose to increase or decrease taxes and/or money to influence the economy. A) False. B) True. Show Answer Correct Answer: B) True. ← 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