This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 151 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 151 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If an economy is to control recession like most of the Euro-zone nations, which of the following is appropriate A) (a) Reducing repo rate. B) (b) Reducing CRR. C) Both (a) and (b). D) None (a) and (b). Show Answer Correct Answer: C) Both (a) and (b). 2. If the federal government has a budget surplus and enacts contractionary fiscal policy, then A) The demand for loans shifts to the left. B) The demand for loans shifts to the right. C) The supply of loanable funds shifts to the right. D) The supply of loanable funds shifts to the left. Show Answer Correct Answer: C) The supply of loanable funds shifts to the right. 3. If operators are fired and replaced with computer technology, the operators would be considered A) Frictionally unemployed. B) Structurally unemployed. C) Cyclically unemployed. D) Dissatisfiededly unemployed dissatisfiededly unemployed. Show Answer Correct Answer: B) Structurally unemployed. 4. If the economy is in a recession, which policy would Congress want to enact to fix the problem? A) Contractionary fiscal policy. B) Expansionary fiscal policy. C) Contractionary monetary policy. D) Expansionary monetary policy. Show Answer Correct Answer: B) Expansionary fiscal policy. 5. Currency deposit ratio (cr)= A) C/D. B) D/C. C) D/R. D) R/D. Show Answer Correct Answer: A) C/D. 6. Which of the following taxes is MOST regressive? A) A sales tax on food. B) The federal income tax. C) The corporate income tax. D) A luxury tax. Show Answer Correct Answer: A) A sales tax on food. 7. Debt has a certain self-reinforcing quality to it. There is one category of government spending that automatically increases along with the federal debt. What is it? A) Military spending. B) Social security benefits . C) Foreign aid. D) Interest payments on the debt. Show Answer Correct Answer: D) Interest payments on the debt. 8. Which of the following is NOT a goal of unions? A) Better wages/pay. B) Shorter shifts/working hours. C) More control for workers in the company/business. D) Job security. Show Answer Correct Answer: C) More control for workers in the company/business. 9. Which of the following is not true about the Federal Reserve? A) It was established by the U.S. constitution. B) It regulates the banking system. C) It lends to banks. D) It can own government bonds. Show Answer Correct Answer: A) It was established by the U.S. constitution. 10. Taxation for which the tax rate progresses from low to high so that the taxpayer's average tax rate is less than their marginal tax rate (even though both are rising). These take a larger proportion of richer households' income. A) Regressive taxation. B) Direct taxation. C) Flat rate / proportional tax. D) Progressive taxation. Show Answer Correct Answer: D) Progressive taxation. 11. Where buyers and sellers learn information from one another and voluntarily exchange goods, services, & money A) Market. B) Partnership. C) Specialization. D) Command Economy. Show Answer Correct Answer: A) Market. 12. Helpsprovide retirement income for the elderly and pays disability benefits A) Social security. B) Federal income tax. C) Medicare. D) State income tax. Show Answer Correct Answer: A) Social security. 13. Which of the following is a component of Net Exports? A) Taxes. B) Savings. C) Investments. D) Imports. Show Answer Correct Answer: D) Imports. 14. Over a three year period, the United States experienced an increase in the real GDP, low inflation, and a declining unemployment rate. For this period, the United States A) Was in a stagnant economic period. B) Was in an economic trough. C) Appeared to be entering a recession. D) Was in the middle of an economic boom. Show Answer Correct Answer: D) Was in the middle of an economic boom. 15. Who is harmed from unanticipated inflation? A) Savers. B) Retirees. C) Borrowers. D) College Students. Show Answer Correct Answer: A) Savers. 16. A ..... measures the cost of purchasing a given market basket in a given year. A) Inflation Rate. B) Market Basket. C) Aggregate Price Level. D) Price Index. Show Answer Correct Answer: D) Price Index. 17. Which is not part of the Legal Institutional Environment as it applies to our AS determinants? A) Regulations. B) Taxes. C) Subsidies. D) Government spending. Show Answer Correct Answer: D) Government spending. 18. Complements vs. Substitutes A) Complements = goods that you purchase together.Example:peanut butter & jellyMilk & Cereal, Chips & SalsaSubstitutes = goods that you instead of each otherExamples:Coke & Pepsi, Gatorade & PowerAde. B) Resources are of equal quality and equally suited for the production of both commoditiesdemandthe quantity of a good or. C) The quantity of a good or service that consumers are willing and able to buy. D) Goods that are produced as by-products from producing another good. Show Answer Correct Answer: A) Complements = goods that you purchase together.Example:peanut butter & jellyMilk & Cereal, Chips & SalsaSubstitutes = goods that you instead of each otherExamples:Coke & Pepsi, Gatorade & PowerAde. 19. Which is a continuation of a normal business cycle: A) Recession, contraction, expansion, boom. B) Expansion, contraction, recession, boom. C) Contraction, recession, expansion, boom. D) Boom, contraction, expansion, recession. Show Answer Correct Answer: C) Contraction, recession, expansion, boom. 20. Investment That changes with the change in income is called A) Gross Investment. B) Net Investment. C) Autonomous Investment. D) Induced Investment. Show Answer Correct Answer: D) Induced Investment. 21. With inflation, AD > AS A) False. B) True. Show Answer Correct Answer: B) True. 22. The market where factors of production are sold. A) FACTOR MARKET. B) PRODUCTION MARKET. C) FACTOR SERVICES. D) None of above. Show Answer Correct Answer: A) FACTOR MARKET. 23. The practice of foreign companies establishing operations in, and therefore bringing jobs to, the United States. A) Outsourcing. B) Wages. C) Insourcing. D) Human Capital. Show Answer Correct Answer: C) Insourcing. 24. The aggregate supply curve shows the relationship between A) The level of inputs and aggregate output. B) The price level and the level of inputs. C) The wage rate and the level of employment. D) The price level and the level of aggregate output supplied. Show Answer Correct Answer: D) The price level and the level of aggregate output supplied. 25. What is the total value of all final goods and services produced in the economy calculated using the prices of a selected base year? A) Nominal GDP. B) Real GDP per capita. C) Real GDP. D) GDP per capita. Show Answer Correct Answer: C) Real GDP. 26. Inflation is at an all time high and consumer spending is at its highest. Which phase of the business cycle is this? A) Peak. B) Recession. C) Expansion. D) Contraction. Show Answer Correct Answer: A) Peak. 27. Social security and Medicare are financed by A) Personal income taxes. B) Payroll taxes. C) Excise taxes. D) Corporation income taxes. E) None of the above. Show Answer Correct Answer: B) Payroll taxes. 28. The average amount earned by each person in a country. It is calculated by dividing a country's Gross National Product by its total population. A) Per Capita Income. B) Personal Income. C) Value added. D) Disposable income. Show Answer Correct Answer: A) Per Capita Income. 29. If the central bank increases the discount rate, what is likely to happen to interest rates in the broader economy? A) Interest rates remain the same. B) Interest rates increase. C) Interest rates decrease. D) It depends on other factors. Show Answer Correct Answer: B) Interest rates increase. 30. What section of the Keynesian aggregate supply curve is explained by inflexible wages? A) Section III. B) Section IV. C) Section II. D) Section I. Show Answer Correct Answer: D) Section I. ← 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