This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 157 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 157 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The exploitation of the inflation situation by companies to make it appear as if it has the effect of making people unaware that they are actually experiencing a decrease in wages, is an illustration of the situation of the term..... A) The Option of Negative Real Interest Rates. B) Money Illusion in The Other Side of The Coin. C) The Option of Positive Real Interest Rates. D) The Layman's View and the Classical Response. Show Answer Correct Answer: B) Money Illusion in The Other Side of The Coin. 2. What is macroeconomic policy objective? A) To reduce economic growth. B) To increase the output of the car industry. C) To increase employment. D) To reduce the price level. Show Answer Correct Answer: C) To increase employment. 3. Every transaction has a consumer and a buyer A) False. B) True. Show Answer Correct Answer: A) False. 4. The wealth effect states that higher prices ..... the purchasing power or the real value of the nation's households' wealth and savings. A) Double. B) Increase. C) Stagnate. D) Reduce. Show Answer Correct Answer: D) Reduce. 5. Good Society is determined by three dimensions, of the Social Production Indicators; the Basic Human Needs, Opportunity and Foundations of Wellbeing. A) True. B) False. Show Answer Correct Answer: B) False. 6. Which one of the following best describes the action of the accelorator theory of investment? A) Firms invest in capital equipment due to higher economic growth. B) Improved business confidence causes firms to increase their investment. C) Large profits encourage firms to invest in new capital equipment. D) Firms decide to invest more following a cut in bank rate. Show Answer Correct Answer: A) Firms invest in capital equipment due to higher economic growth. 7. Even if one country has an absolute advantage in the production of two products, it may still be advantageous to trade with another nation A) True. B) False. Show Answer Correct Answer: A) True. 8. Consumption is defined as ..... A) Purchase of goods and service. B) The higher the income the higher consumption. C) Not depend on income. D) High disposable income. Show Answer Correct Answer: A) Purchase of goods and service. 9. What happens to consumers purchasing power during peak A) It increases. B) It decreases. C) It stays the same. D) None of above. Show Answer Correct Answer: B) It decreases. 10. Which of these will the government do to repay the national debt?I Cut spending.II Raise taxes.III Increase interest rates.IV Borrow more money. A) III and IV only. B) I and II only. C) IV only. D) II only. Show Answer Correct Answer: B) I and II only. 11. Which one of them is an Indirect tax A) Special Assessment Tax. B) Corporation Tax. C) Fees. D) Excise Duty. Show Answer Correct Answer: D) Excise Duty. 12. Tax incentives given to firms to promote technological development, A) Maintain production costs. B) Reduces production output. C) Increases production costs. D) Reduces production costs. Show Answer Correct Answer: D) Reduces production costs. 13. ..... shows the various mixes of output that an economy can produce. A) MODERN ECONOMY. B) TRADE. C) Production possibilities frontier. D) None of above. Show Answer Correct Answer: C) Production possibilities frontier. 14. ..... are licensing systems that limit the right of individuals to buy foreign currency. A) Floating Exchange Rate. B) Foreign Exchange Reserves. C) Foreign Exchange Controls. D) Exchange Market Intervention. Show Answer Correct Answer: C) Foreign Exchange Controls. 15. A corporation that operates in many different countries or nations A) Transcontinental. B) Massive. C) Multinational. D) Major. Show Answer Correct Answer: C) Multinational. 16. ..... is the most basic or fundamental economic problem. A) Capital. B) Labor. C) Greed. D) Scarcity. Show Answer Correct Answer: D) Scarcity. 17. Macroeconomics is the study of A) Relatively large-scale units, markets and decision taken by groups of individuals within an economy. B) Relatively small-scale units, markets and decisions taken by individuals within an economy. Show Answer Correct Answer: A) Relatively large-scale units, markets and decision taken by groups of individuals within an economy. 18. A business where workers are required to join a union within a set time period after being hired. A) Union Shop. B) Labor Shop. C) Right to Work Law. D) Labor Union. Show Answer Correct Answer: A) Union Shop. 19. Real GDP measures economic well-being, good in underdeveloped countries and bad in developed countries. A) True. B) Lie. Show Answer Correct Answer: B) Lie. 20. If a person's job is replaced by technology (ie:a machine), the unemployment that results is ..... A) Cyclical. B) Structural. C) Seasonal. D) Frictional. Show Answer Correct Answer: B) Structural. 21. Individuals have the exclusive right to sell their possessions with limited government interference. A) Property rights. B) Market price. C) Law of Supply. D) Law of Demand. Show Answer Correct Answer: A) Property rights. 22. Unexpected inflation can cause: A) Redistribution of wealth. B) Reduce the value of savings. C) Neither answer A nor B. D) A and B are true. Show Answer Correct Answer: D) A and B are true. 23. Disposable income can be written as ..... [Pendapatan boleh guna boleh ditulis sebagai ..... ] A) C + I + G + T [C + I + G + T]. B) Y-T [Y-T]. C) C + S = I [C + S = I]. D) C = S + I [C = S + I]. Show Answer Correct Answer: B) Y-T [Y-T]. 24. Which of the following is not a component of the money supply in the narrow sense? A) Bank card. B) Fixed deposits. C) Daily deposits. D) All the points are correct. Show Answer Correct Answer: B) Fixed deposits. 25. It is an economic model of macroeconomics that represents the movement of goods, services, and money within the various sectors of the economy. A) RECTANGULAR-FLOW DIAGRAM MODEL. B) CIRCULAR-FLOW DIAGRAM MODEL. C) FREE-FLOW DIAGRAM MODEL. D) None of above. Show Answer Correct Answer: B) CIRCULAR-FLOW DIAGRAM MODEL. 26. The U.S. Government hired 10 Chinese-language experts, from a Chinese company based in China, to train U.S. Workers. A) GDP increases. B) GDP decreases. C) No change. D) None of above. Show Answer Correct Answer: B) GDP decreases. 27. What is the difference between the GDP deflator and the CPI? A) The GDP deflator measures the prices of all goods and services produced, while the CPI measures the prices of goods and services bought by consumers. B) The GDP deflator includes imported goods, while the CPI does not. C) The GDP deflator assigns changing weights to prices, while the CPI assigns fixed weights. D) All of the above. Show Answer Correct Answer: A) The GDP deflator measures the prices of all goods and services produced, while the CPI measures the prices of goods and services bought by consumers. 28. Increases in AD tend to cause: A) The price level to increase. B) Real GDP to decrease. C) The unemployment rate to increase. D) All of the above. Show Answer Correct Answer: A) The price level to increase. 29. Winterfell and Dorne have no restrictions on the flow of financial capital. An increase in business optimism in Dorne has lead to a higher real interest rate in Dorne.What effect does this have on real interest rates and long-run economic growth in Winterfell? A) Lower interest rates and higher economic growth in Winterfell. B) Higher interest rates and lower economic growth. C) Lower interest rates and lower economic growth. D) Neither interest rates nor economic growth in Winterfell are affected. E) Higher interest rates and higher economic growth. Show Answer Correct Answer: B) Higher interest rates and lower economic growth. 30. One year nominal GDP was $ 286 billion and the price index was 88. Real GDP that year was: A) $ 262 billion. B) $ 325 billion. C) $ 252 billion. D) $ 308 billion. Show Answer Correct Answer: B) $ 325 billion. ← 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