This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 159 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 159 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is Economic Growth? A) Increase in government spending. B) Increase in the production of goods and services in an economy over time. C) Decrease in consumer spending. D) Decrease in exports. Show Answer Correct Answer: B) Increase in the production of goods and services in an economy over time. 2. When a nation totally bans trade with another country, it is imposing: A) A quota. B) Free trade. C) An embargo. D) A tariff. Show Answer Correct Answer: C) An embargo. 3. All countries need all other countries for trade is called ..... A) Comparative Advantage. B) Interdependence. C) Unfavorable Balance of Trade. D) Favorable Balance of Trade. Show Answer Correct Answer: B) Interdependence. 4. Which economic indicator would be used to keep track of inflation by tracking changes in the prices of goods and services typically purchased by consumers? A) Consumer price index. B) Stock market. Show Answer Correct Answer: A) Consumer price index. 5. What is the key difference between GDP and GNP? A) GDP measures an economy, GNP measures poverty. B) GDP measures domestic production, GNP measures production domestically & abroad. C) GDP is only used by the U.S., GNP is used by most countries. D) GDP includes only goods, GNP includes both goods & services. Show Answer Correct Answer: B) GDP measures domestic production, GNP measures production domestically & abroad. 6. Which of the following causes a shift in the long run Philips curve? A) Any changes to aggregate supply. B) Any changes to aggregate demand. C) Any changes in frictional or structural unemployment. D) All of the above. Show Answer Correct Answer: C) Any changes in frictional or structural unemployment. 7. If the central bank in the preceding question instead holds the money supply constant and allows the interest rate to adjust, the change in aggregate demand resulting from the increase in government purchases will be A) Larger. B) The same. C) Smaller but still positive. D) Negative. Show Answer Correct Answer: C) Smaller but still positive. 8. Using the product approach, which one of the following economic agents is the largest contributor to the gross domestic product of the Euro Area? A) The rest of the world sector. B) Non-profit institutions. C) Member countries' governments. D) Businesses. E) Private households. Show Answer Correct Answer: D) Businesses. 9. Suppose a firm that makes appliances merges with a company that makes clothes, and later it buys a slaughter house. What is this combination called? A) Conglomerate. B) Franchise. C) Horizontal merger. D) Cooperative. Show Answer Correct Answer: A) Conglomerate. 10. ..... refers to the difference between exports and imports of visible items. A) BOP. B) BOT. C) Both. D) NONE. Show Answer Correct Answer: B) BOT. 11. What will be the meaning of, if MPC = 0.75? A) 0.75 % of increased income is spent on consumption. B) 75% of income is spent on consumption. C) 75% of increased income is spent on consumption. D) 0.75% of income is spent on consumption. Show Answer Correct Answer: C) 75% of increased income is spent on consumption. 12. Inflation decreases what in an economy? A) Unemployment. B) The purchasing power of a dollar. C) Interest rates. D) Prices of goods and services. Show Answer Correct Answer: B) The purchasing power of a dollar. 13. Which type of economists believe that the economy is self correcting and does not need government intervention? A) Supply-side economists. B) Keynesian economists (Keynes). C) Monetarist economists. D) Classical economists (Hayek). Show Answer Correct Answer: D) Classical economists (Hayek). 14. NIT=?IF INDIRECT TAX=0SUBSIDIES=200 A) -100. B) 200. C) -200. D) 100. Show Answer Correct Answer: C) -200. 15. Open market operations (OMO) A) Purchase or sale of U.S. government bonds and treasury bills. B) The percent of deposits that banks have to have set aside in cash at any given time. C) An institution that lends money to other banks; also where government does its banking business. D) Federal spending required by law that continues each year without the need for congressional approval. Show Answer Correct Answer: A) Purchase or sale of U.S. government bonds and treasury bills. 16. The ..... is the unemployment rate at which inflation does not change over time. A) Stagnating Inflation Rate of Unemployment. B) Accelerating Inflation Rate of Unemployment. C) Decreasing Inflation Rate of Unemployment. D) Nonaccelerating Inflation Rate of Unemployment. Show Answer Correct Answer: D) Nonaccelerating Inflation Rate of Unemployment. 17. Inputs into production that nature (land, river, mineral deposits) A) Human capital. B) Productivity. C) Natural resources. D) Physical capital. Show Answer Correct Answer: C) Natural resources. 18. Who does Inflation hurt? A) People with a fixed income. B) Savers. C) Money Lenders at fixed interest rates. D) All of the above. Show Answer Correct Answer: D) All of the above. 19. After much debate in Congress, the House and Senate finally pass a bill calling for a 1 percent tax decrease and a cut in federal funding. This is an example of A) Tight money policy. B) Open market operations. C) Fiscal policy. D) Monetary policy. Show Answer Correct Answer: C) Fiscal policy. 20. What is an example of cyclical unemployment? A) A VCR repairman who lost their job due to obsolescence. B) A person that lost their job due to a recession. C) A person who has given up looking for work. D) A recent college graduate looking for their first job. Show Answer Correct Answer: B) A person that lost their job due to a recession. 21. Bantuan Langsung Tunai is not counted in GDP A) False. B) True. Show Answer Correct Answer: B) True. 22. Which one of the following is NOT included in the M2 measure of money? A) The value of coins in circulation. B) The value of credit card balances. C) The value of savings accounts. D) The value of money market accounts. E) The value of checking accounts. Show Answer Correct Answer: B) The value of credit card balances. 23. Percent of population in the labor force. If people leave the labor force, the unemployment rate falls. A) Unemployment. B) Full Employment Output (Y). C) Labor Force Participation Rate. D) Natural Rate of Unemployment (NRU). Show Answer Correct Answer: C) Labor Force Participation Rate. 24. What is true about equilibrium price level? A) Firms will not be able to sell what they want to sell. B) Consumers will not be able to buy what they want to buy. C) Firms sell what they want to sell and consumers buy what they want to buy. D) There will be either surplus or shortage of products in the economy. Show Answer Correct Answer: C) Firms sell what they want to sell and consumers buy what they want to buy. 25. Which of the following best explains why Bitcoin is not currently functioning well as money in the US? A) It is not backed by a commodity (such as gold or silver). B) It is accepted by many US merchants. C) Its value is highly volatile. D) It is a digital currency. Show Answer Correct Answer: C) Its value is highly volatile. 26. In which part of the GDP calculation does this fit?The US military spends $ 5 billion on five new helicopters. A) Investment spending. B) Government spending. C) Consumer spending. D) Net exports. Show Answer Correct Answer: B) Government spending. 27. Which of the following is not an example of contractionary monetary policy? A) The sale of government bonds. B) Raising the commercial bank reserve requirements. C) Raising corporation tax rates. D) Raising interest rates. Show Answer Correct Answer: C) Raising corporation tax rates. 28. Fill in the blanks:If the Rupee/US Dollar exchange rate goes from Rs. 85 per USD to Rs 80 per USD, then the Indian Rupee has ..... and the US Dollar has ..... A) Appreciated, depreciated. B) Depreciated, appreciated. C) Appreciated, appreciated. D) Depreciated, depreciated. Show Answer Correct Answer: A) Appreciated, depreciated. 29. If Ahmad buys a car for his own personal use, the item is regarded as: A) Export/Import. B) Government expenditure. C) Consumption. D) Investment. Show Answer Correct Answer: C) Consumption. 30. Which of these following example can be counted in GDP? A) Your grandmother wins $ 10 million in the lottery. B) Company A takeover by purchasing all the assets of Company B. C) Buy mozzarella cheese to store it as restaurant's inventory. D) You buy a used copy of this textbook. Show Answer Correct Answer: C) Buy mozzarella cheese to store it as restaurant's inventory. ← 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