This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 16 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. T.V., radio, washing machine, etc., are examples of: A) Capital goods. B) Single-use consumer goods. C) Semi-durable consumer goods. D) Durable consumer goods. Show Answer Correct Answer: D) Durable consumer goods. 2. In which situation might the Federal Reserve buy government securities or lower its discount rate? A) In a recession. B) In the middle of an expansion phase. C) When inflation is too high. D) When aggregate demand is too high. Show Answer Correct Answer: A) In a recession. 3. When a country (like the U.S.) imports MORE goods/services than they export, their net exports will be ..... A) Negative. B) Positive. Show Answer Correct Answer: A) Negative. 4. Goods or services produced in a foreign country and shipped into the United States. A) Subsidies. B) Entitlements. C) Tariffs. D) Exports. E) Imports. Show Answer Correct Answer: E) Imports. 5. A high marginal propensity to consume implies which of the following? A) A small change in consumption when income changes. B) A high savings rate. C) A high marginal tax rate. D) An equilibrium level of income near full employment. E) A low marginal propensity to save. Show Answer Correct Answer: E) A low marginal propensity to save. 6. Monetary value of final capital goods businesses purchase in a given time period, the value of inventories produced by businesses, but not yet sold, by the end of the measurement time period, and the value of new home construction in a given time period. A) Net Exports. B) Government Spending. C) Consumer Spending. D) Investment. Show Answer Correct Answer: D) Investment. 7. C + I + G + (X-M) =??? A) GDP. B) CPI. C) Unemployment. D) None answer is correct. Show Answer Correct Answer: A) GDP. 8. The total value of all final goods and services produced in the economy during a given year, calculated using the prices of a selected base year A) Real GDP. B) Real GDP per Capita. C) GDP. D) Nominal GDP. Show Answer Correct Answer: A) Real GDP. 9. The following is a category of taxes structure EXCEPT ..... A) Service tax. B) Regressive tax. C) Progressive tax. D) Proportional tax. Show Answer Correct Answer: A) Service tax. 10. The term Tax Cost is relevant when..... A) The government taxes the Real Interest Rate on an investment. B) The government does not carry out any taxation on investment. C) The government taxes the Nominal Interest Rate on an investment. D) The government does leasing on losses experienced by individuals on an investment. Show Answer Correct Answer: C) The government taxes the Nominal Interest Rate on an investment. 11. If INFLATION is happening what could the FEDERAL RESERVE do to help stop prices from rising? A) Decrease Taxes. B) Increase Taxes. C) Decrease the Money Supply. D) Increase the Money Supply. Show Answer Correct Answer: C) Decrease the Money Supply. 12. Issuing currency is the monopoly of the central bank. A) True. B) False. Show Answer Correct Answer: A) True. 13. The Federal Reserve wants to increase the money supply in the United States. What is the Federal Reserve likely to do to accomplish this? A) Reduce the discount rate. B) Sell securities on the open market. C) Increase the reserve requirement for banks. D) Require banks to hold a reserve for all types of deposits. Show Answer Correct Answer: A) Reduce the discount rate. 14. What happens when a company purposely prices their products very low, in an attempt to get people to try them? A) Surplus. B) Price floor. C) Shortage. D) Equilibrium. Show Answer Correct Answer: C) Shortage. 15. Productively Efficient A) Y-axis. B) Producing in a way that best uses all of the economy's resources. C) Vthe amount of a good or service that a firm is willing and able to supply at a given price. D) A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good. Show Answer Correct Answer: B) Producing in a way that best uses all of the economy's resources. 16. GDP is the market value of all goods and services produce in an economy within one year period, including final and intermediary goods A) True. B) False. Show Answer Correct Answer: B) False. 17. One person using something limits the ability of others to use it is called A) Rivalry. B) Scarcity. C) Sharing. D) None of above. Show Answer Correct Answer: A) Rivalry. 18. While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the regulations come at the cost of reducing the incomes of the regulated firms' owners, workers, and customers. This statement illustrates the principle that: A) Rational people think at the margin. B) People respond to incentives. C) Trade can make everyone better off. D) People face tradeoffs. Show Answer Correct Answer: D) People face tradeoffs. 19. The Federal Reserve can increase the money supply by A) Borrowing reserves from foreign governments. B) Selling foreign currency holdings. C) Buying gold from foreign central banks. D) Selling gold reserves to the banks. E) Buying government bonds on the open market. Show Answer Correct Answer: E) Buying government bonds on the open market. 20. An economy with the main goals of security and stability is labeled a ..... A) Command economy. B) Market economy. C) Traditional economy. D) Mixed economy. Show Answer Correct Answer: C) Traditional economy. 21. What does the GDP deflator measure? A) The economy's prices of final goods in a period of time. B) The economy's prices of intermediate goods in a period of time. C) The economy's prices of all goods and services in a period of time. D) The economy's prices of imports and exports in a period of time. Show Answer Correct Answer: A) The economy's prices of final goods in a period of time. 22. The ..... is a hypothetical function that shows how productivity (output per worker) depends on the quantities of physical capital per worker and human capital per worker as well as the state of technology. A) Aggregate Production Function. B) Productivity Function. C) Aggregate S/D Function. D) Capital Production Function. Show Answer Correct Answer: A) Aggregate Production Function. 23. As a macroeconomic indicator, it refers to the percentage of the population that is:*OUT of work.*LOOKING for work.*WILLING to work. A) Unemployment. B) Inflation. C) Growth Domestic Product. D) Monetary Policy. Show Answer Correct Answer: A) Unemployment. 24. The inflation rate is A) Not an important measure to economists. B) The percentage change in prices over time. C) Measured in fixed dollars. D) The ability to buy goods or services. Show Answer Correct Answer: B) The percentage change in prices over time. 25. Production Possibilities for Toyland Dolls/Fire Trucks 400/0 300/200 200/350 100/450 0/500 Which of the following statements accurately describes the production possibilities for Toyland? A) Without more information, it is impossible to determine the opportunity cost of an additional 100 dolls. B) The opportunity cost of an additional 100 dolls increases as more dolls are produced. C) The opportunity cost of an additional 100 dolls decreases as more dolls are produced. D) The opportunity cost of an additional 100 dolls is 500 fire trucks. Show Answer Correct Answer: B) The opportunity cost of an additional 100 dolls increases as more dolls are produced. 26. Accommodating items are those items of BOP which A) Are not determined by considerations of profit. B) Are considered by the positive or negative BOP status. C) Lead to increase or decrease in official reserves with RBI. D) All of these. Show Answer Correct Answer: D) All of these. 27. Which answer below is something that the FED does NOT do? Remember, the FED has three main fiscal tools to impact money supply. A) Increase/decrease reserve requirement. B) Increase/decrease income tax rates. C) Increase/decrease discount rate. D) Buy/sell bonds. Show Answer Correct Answer: B) Increase/decrease income tax rates. 28. It is the total market value of all the final goods and services in a given period of time by the country's citizens. A) Market Basket of Goods. B) Consumer Price Index. C) Gross National Product. D) Gross Domestic Product. Show Answer Correct Answer: C) Gross National Product. 29. TRUE or FALSE:Consumer durable goods are included in the value of euro area stock of manufactured capital. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 30. A change in which of the following will cause the aggregate demand curve to shift? A) Productivity rates. B) Consumer wealth. C) Prices of inputs. D) Energy prices. Show Answer Correct Answer: B) Consumer wealth. ← 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