This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 152 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 152 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Savings are leakages from the Circular Flow. A) True. B) False. Show Answer Correct Answer: A) True. 2. If wages were automatically adjusted for changes in the price level, the short-runaggregate supply curve would most likely be: A) Flatter. B) Steeper. C) Unchanged. D) None of above. Show Answer Correct Answer: B) Steeper. 3. Characteristics include owned by two or more people and may be general or limited A) Sole Propriotorship. B) Partnership. C) Corporation. D) None of above. Show Answer Correct Answer: B) Partnership. 4. In an economy, the price index in 2006 was 100 and the real gross domestic product (GDP) was $ 1, 000. In2010, the price index was 110 and the nominal GDP was $ 2, 200. Based on that information, which of the followingcan be inferred about the economy's nominal GDP and real GDP in 2010? A) Nominal GDP in 2006 = $ 1000; Real GDP in 2010 = $ 2000. B) Nominal GDP in 2006 = $ 1100; Real GDP in 2010 = $ 2420. C) Nominal GDP in 2006 = $ 1000; Real GDP in 2010 = $ 2420. D) Nominal GDP in 2006 = $ 2000; Real GDP in 2010 = $ 1, 000. E) Nominal GDP in 2006 = $ 1100; Real GDP in 2010 = $ 2200. Show Answer Correct Answer: A) Nominal GDP in 2006 = $ 1000; Real GDP in 2010 = $ 2000. 5. Which of the following might cause supply to increase on a Micro graph? A) Government subsidizing tomato production. B) Firms providing electricity and power going out of business. C) An increase in government taxation on textbook producers. D) A natural disaster destroying farmers ability to harvest their crops. Show Answer Correct Answer: A) Government subsidizing tomato production. 6. Investment expenditure is one of the factors affecting ..... A) AD CURVE. B) AS CURVE. Show Answer Correct Answer: A) AD CURVE. 7. An economic system in which prices and wages are determined by competition between businesses, without government regulation A) Free market. B) The best market. C) USA USA. D) Command market. Show Answer Correct Answer: A) Free market. 8. The three functions of money are ....., store of value and standard of value A) Caliber of wealth. B) Medium of exchange. C) Quality of value. D) Level of exchange. Show Answer Correct Answer: B) Medium of exchange. 9. The gross national product (GNP) equals ..... A) GDP-net national income from aborad. B) NNP-depreciation. C) GDP + net national income from abroad. D) GDP-inflation. Show Answer Correct Answer: C) GDP + net national income from abroad. 10. The ..... is an estimate of what the budget balance would be if real GDP were exactly equal to potential output. A) Cyclically Adjusted Budget Balance. B) Fiscal Year. C) Government Debt. D) Debt-GDP Ratio. Show Answer Correct Answer: A) Cyclically Adjusted Budget Balance. 11. Government purchases or sales of currency in the foreign exchange market constitute ..... A) Foreign Exchange Reserves. B) Exchange Market Intervention. C) Foreign Exchange Controls. D) Exchange Rate Regime. Show Answer Correct Answer: B) Exchange Market Intervention. 12. How do tight and loose monetary policy affect interest rates? A) Tight monetary policy tends to decrease interest rates. B) Loose monetary policy tends to increase interest rates. C) Tight monetary policy tends to increase interest rates, while loose monetary policy tends to decrease interest rates. D) Tight monetary policy has no effect on interest rates. Show Answer Correct Answer: C) Tight monetary policy tends to increase interest rates, while loose monetary policy tends to decrease interest rates. 13. Stagflation occurs when the economy experiences A) Rising prices and rising output. B) Rising prices and falling output. C) Falling prices and falling output. D) Falling prices and rising output. Show Answer Correct Answer: B) Rising prices and falling output. 14. A reduction in the required reserve ratio will cause A) An increase in the demand for money. B) Decrease in the discount rate. C) Decrease i the money supply. D) An increase in excess reserves. Show Answer Correct Answer: D) An increase in excess reserves. 15. Serves as a measure of the changes in and to trace the movement of the average prices of company shares of stocks traded in Manila Stock Exchange. A) Index number. B) Wholesale price index. C) Stock price index. D) Retail price index. Show Answer Correct Answer: C) Stock price index. 16. Consumer Spending is a measurement tool of GDP? A) False. B) True. Show Answer Correct Answer: B) True. 17. The Policy That Regulates Taxes Called? A) Interest Rates Policy. B) Monetary Policy. C) Taxes Policy. D) Fiscal Policy. Show Answer Correct Answer: D) Fiscal Policy. 18. If known; consumption IDR 27.5 T, private investment or expenditure IDR 39 T, government expenditure IDR 13.5 T, export IDR 9 T, import IDR 6.5 T. From this data, calculate national income using the expenditure approach! A) 81.5 T. B) 82.5 T. C) 83.5 T. D) 84.5 T. E) All wrong. Show Answer Correct Answer: B) 82.5 T. 19. The sale of a Mercedes-Benz from Germany to France would be recorded as a merchandise export in the ..... account of Germany's balance of payments. A) Current. B) Capital. C) Export. D) Official reserves. Show Answer Correct Answer: A) Current. 20. Tax on IMPORTED goods A) Tax incentive. B) Sales tax. C) Estate tax. D) Tariff. Show Answer Correct Answer: D) Tariff. 21. Which of the following would occur if the international value of the United States dollar decreased? A) United States exports would increase. B) More gold would flow into the United States. C) United States demand for foreign currencies would increase. D) The United States trade deficit would increase. E) United States citizens would pay less for foreign goods. Show Answer Correct Answer: A) United States exports would increase. 22. How does a budget deficit relate to the national debt? A) Budget deficits add to/ create the national debt. B) Budget deficits reduce the size of the national debt. C) Budget deficits are more than the national debt. D) They are the same thing. Show Answer Correct Answer: A) Budget deficits add to/ create the national debt. 23. Which result occurs when government expenditures are greater than the government's total revenue? A) A federal budget surplus. B) Increased excise taxes. C) A federal budget deficit. D) Reduced net exports. Show Answer Correct Answer: C) A federal budget deficit. 24. Identify which items below does not belong to the group. A) Labor sold by household=Product market. B) Labor sold by household=Resource Market. C) Computers sold by businesses=Product market. D) Computers bought by households=product market. Show Answer Correct Answer: A) Labor sold by household=Product market. 25. Which type of tax is the Personal Income Tax? A) Regressive. B) Progressive. C) Proportional. D) Allotment Tax. Show Answer Correct Answer: B) Progressive. 26. Which one of the following is not a limitation of demand-side policies? A) There is a trade off between macroeconomic objectives. B) There is a reduction in economic efficiency. C) There are time lags. D) They limit the incentive function of taxation. Show Answer Correct Answer: D) They limit the incentive function of taxation. 27. The amount of a product demanded by consumers is greater than the supply. A) Scarcity. B) Market price. C) Law of Supply. D) Law of Demand. Show Answer Correct Answer: A) Scarcity. 28. Assuming all other things equal, if a society produces just enough capital goods this year to replace the portion of its existing capital stock that wore out during the year, its PP curve will A) Not move from its present location. B) Shift to the right. C) Shift to the left. D) Disappear entirely. Show Answer Correct Answer: A) Not move from its present location. 29. As a ..... central bank provides financial assistance to commercial banks in case of financial emergency. A) Controller of credit. B) Lender of last resort. C) Bank of note issue. D) Clearing house. Show Answer Correct Answer: B) Lender of last resort. 30. Which of the following would be MOST impacted by an increase in a progressive income tax? A) Sally who makes $ 50, 000/year managing a restaurant. B) Trent who makes a $ 100, 000/year as a consultant. C) Jonathan who makes $ 75, 000/year as an account for the Federal Reserve. D) I don't know, I still don't get this!. Show Answer Correct Answer: B) Trent who makes a $ 100, 000/year as a consultant. ← 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