This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 155 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 155 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Why might the Federal Reserve change the discount rate? A) To encourage financial institutions to hold excess reserves for profit. B) To signal financial institutions to purchase government securities. C) To prompt financial institutions to alter their lending activity. D) To convince financial institutions to decrease their cash on deposit. Show Answer Correct Answer: C) To prompt financial institutions to alter their lending activity. 2. Workers are an example of which factor of production? A) Land. B) Labor. C) Capital. D) Workers are not part of the factors of production. Show Answer Correct Answer: B) Labor. 3. Measures wholesale price levels in the economy. A) Consumer Price Index (CPI). B) Gross Domestic Product (GDP. C) Gross National Product (GNP). D) Producer Price Index (PPI). Show Answer Correct Answer: D) Producer Price Index (PPI). 4. What causes LM curve to shift leftward? A) Decrease in taxation. B) Increase in government expenditure. C) Increase in money supply. D) Decrease in money supply. Show Answer Correct Answer: D) Decrease in money supply. 5. What a buyer pays for a unit of the specific good or service A) Price. B) Price ceiling. C) Price control. D) Price floor. Show Answer Correct Answer: A) Price. 6. Imagine Benjamin, Oliver, and Aiden are playing a game of 'World Leaders'. In this game, they are leaders of different countries. If Oliver's country operates under an economic system where major economic decisions are made by the central government, what kind of economy is he running? A) Traditional economy. B) Command economy. C) Market economy. D) Mixed economy. Show Answer Correct Answer: B) Command economy. 7. If you buy part of a company this is called a A) Share. B) Dividend. C) Patent. D) None of above. Show Answer Correct Answer: A) Share. 8. The insurance company I worked for laid off everyone in our office and outsourced the work to a foreign country. This is an example of ..... unemployment. A) Cyclical. B) Structural. C) Frictional. D) None of above. Show Answer Correct Answer: B) Structural. 9. Farmer Joe cannot plant crops during summer. In this case, he is ..... A) Seasonally unemployed. B) Fictionally unemployed. C) Cyclically unemployed. D) Structurally unemployed. Show Answer Correct Answer: A) Seasonally unemployed. 10. What is the formula of APS? A) $\Delta$. B) S/Y. C) Y/S. D) None of above. Show Answer Correct Answer: B) S/Y. 11. Is this counted in the GDP of the US?Your parents ask you to babysit your two younger siblings for the night. A) Yes. B) No. Show Answer Correct Answer: B) No. 12. What type of unemployment is a person experiencing when they are laid off during a recession? A) Structural. B) Cyclical. C) Seasonal. D) Frictional. Show Answer Correct Answer: B) Cyclical. 13. GDP measures a country's level of(I) production(II) stability(III) income A) I only. B) II only. C) III only. D) I and II. E) I and III. Show Answer Correct Answer: E) I and III. 14. Which country had hyperinflation in the early 2000's? A) United States. B) United Kingdom. C) Zimbabwe. D) Canada. Show Answer Correct Answer: C) Zimbabwe. 15. What do you understand by domestic factor receipt plus NFIA? A) NNP at MP. B) NDP at MP. C) National Income. D) GNP at FC. Show Answer Correct Answer: C) National Income. 16. Tax cuts on business income increase aggregate demand by increasing A) Business investment spending. B) Government spending. C) Consumption spending. D) Wage rates. Show Answer Correct Answer: A) Business investment spending. 17. The long-run aggregate supply curve is A) A horizontal line through the current level of output. B) A vertical line through the non-inflationary rate of output. C) A vertical line through the current level of output. D) A vertical line through the natural rate level of output. Show Answer Correct Answer: D) A vertical line through the natural rate level of output. 18. Kevin lost his job a year ago and he has stopped looking for a new one. Kevin is currently considered what? A) A discouraged worker. B) Fully underemployed. C) Situationally unemployed. D) Frictionally unemployed. Show Answer Correct Answer: A) A discouraged worker. 19. Which answer choice represents a fiscal policy rather than a monetary policy? A) An increase in government spending. B) The establishment of reserve requirements. C) The setting of interest rates. D) Lowering the money supply. Show Answer Correct Answer: A) An increase in government spending. 20. Fiscal Policy is controlled by ..... A) The Department of Commerce. B) The Federal Reserve System. C) The states. D) The Government. Show Answer Correct Answer: D) The Government. 21. What is included in macroeconomics? A) The causes of a market failure. B) The causes of a change in the price of one product. C) The causes of economic growth. D) The causes of determinants of price elasticities of supply. Show Answer Correct Answer: C) The causes of economic growth. 22. To counteract a recession, the Fed could A) Buy government bonds on the open market and raise the reserve requirement. B) Buy government bonds on the open market and lower the reserve requirement. C) Buy government bonds on the open market and raise the discount rate. D) Sell government bonds on the open market and raise the discount rate. Show Answer Correct Answer: B) Buy government bonds on the open market and lower the reserve requirement. 23. Expansionary fiscal policy at home ie. increase in G or decrease in T A) Impacts saving, shift to the left, no impact on I. B) Impacts I, shift to the right, no impact on saving. C) Impacts I, shift to the left, no impact on saving. D) Impacts saving, shift to the right, no impact on I. Show Answer Correct Answer: A) Impacts saving, shift to the left, no impact on I. 24. If consumption spending totals $ 40 million, investment is $ 30 million, tax revenue totals $ 15 million, government spending is $ 10 million, exports are $ 3 million and imports are $ 5 million, GDP is ..... A) $ 93 million. B) $ 78 million. C) $ 80 million. D) $ 103 million. Show Answer Correct Answer: B) $ 78 million. 25. Who influences the total output of the Chinese economy? A) The Chinese government. B) Chinese firms and the Chinese government. C) Chinese households and Chinese firms. D) Chinese households, Chinese firms, and the Chinese government. Show Answer Correct Answer: D) Chinese households, Chinese firms, and the Chinese government. 26. Which is NOT a key component of the definition of Gross Domestic Product? A) Within a country's borders. B) Final new goods and services. C) Market value (expressed in dollars for the US). D) Money held in stocks and bonds. Show Answer Correct Answer: D) Money held in stocks and bonds. 27. The late works of ..... is related to macroeconomics. A) Marshall. B) Robbins. C) Adam Smith. D) Keynes. Show Answer Correct Answer: D) Keynes. 28. The overall goal of tax policy in the United States is to ensure that taxes are A) Low. B) Equal. C) Illegal. D) Fair. Show Answer Correct Answer: D) Fair. 29. The best example of a "cyclically unemployed" worker is one who: A) Reduces productivity by causing frictions in a business. B) Is laid off during a recessionary period in the economy. C) Is in the process of voluntarily switching jobs. D) Is discouraged and not actively seeking work. Show Answer Correct Answer: B) Is laid off during a recessionary period in the economy. 30. Governments use tax revenue from individuals and businesses to provide- A) Profits to buy more resources. B) Income to purchase products. C) For business expansion and increased consumption. D) Public goods and services. Show Answer Correct Answer: D) Public goods and services. ← 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