This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 161 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 161 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is NOT TRUE concerning the Great Recession? A) The programs used to stimulate the economies relied on Classical economic thinking. B) Different countries used distinct approaches to counter the recession. C) Unemployment benefits were an important part of the United States Stimulus Program. D) There is still a debate concerning the effects of the measures used to counter the Great Recession on the slow economic growth since then. E) All of these statements are accurate. Show Answer Correct Answer: A) The programs used to stimulate the economies relied on Classical economic thinking. 2. What type of unemployment occurs when a person is in between jobs? A) Frictional Unemployment. B) Structural Unemployment. C) Seasonal Unemployment. D) Demand-deficient Unemployment. Show Answer Correct Answer: A) Frictional Unemployment. 3. A centrally planned economy promotes..... A) Government ownership, competition, and no profit. B) Government ownership, profit, and no competition. Show Answer Correct Answer: B) Government ownership, profit, and no competition. 4. A name meant to emphasize that workers are free not to join a union A) Work Right Law. B) Non-Union Law. C) Right to Work Law. D) Right to be Free Law. Show Answer Correct Answer: C) Right to Work Law. 5. The government begins training programs to teach computer repair and website design to unemployed adults. Which kind of unemployment would such training help MOST? A) Frictional. B) Structural. C) Cyclical. D) Seasonal. Show Answer Correct Answer: B) Structural. 6. ..... are stocks of goods and raw materials held to facilitate business operations. A) Inventories. B) Bonds. C) Product Markets. D) Stocks. Show Answer Correct Answer: A) Inventories. 7. Interest rates will tend to rise when A) The quantity of money demanded exceeds the quantity supplied. B) The quantity of money supplied exceeds the quantity demanded. C) The supply of money curve shifts to the right. D) The demand for money curve shifts to the left. Show Answer Correct Answer: A) The quantity of money demanded exceeds the quantity supplied. 8. Deficit measures how much more expensive a set of goods and services has become over a certain period, usually a year A) False. B) True. Show Answer Correct Answer: A) False. 9. Who is in the labor force? A) -Above 16 years;-Able/willing to work. B) All of these are correct. C) -Not institutionalized (jail/hospital). D) -Not in military, in school full time, or retired. Show Answer Correct Answer: B) All of these are correct. 10. Which action could the U.S. government use to protect domestic automobile manufacturers from foreign competition? A) Increase taxes on the production and sale of U.S. automobiles. B) Increase tariffs and import restrictions on foreign automobiles. Show Answer Correct Answer: B) Increase tariffs and import restrictions on foreign automobiles. 11. Inflow of Foreign exchange is recorded on which side of BOP A) Debit. B) Credit. C) Both. D) None. Show Answer Correct Answer: B) Credit. 12. If the nominal wage rises more than the price level, the real wage..... A) Will grow. B) Will not change. C) Will decrease. D) Unable to answer due to lack of labor supply and demand data. Show Answer Correct Answer: A) Will grow. 13. On a micro graph, which of the following might cause demand to decrease? A) A substitute good is available at a cheaper price. B) A complementary good is now available at a cheaper rate. C) A rise in the popularity of a product. D) Increase in the disposable income of consumers. Show Answer Correct Answer: A) A substitute good is available at a cheaper price. 14. It captures the prices of goods and services that consumers typically buy. A) Total Weighted Price. B) Consumer Product Index. C) Weighted Price. D) Consumer Price Index. Show Answer Correct Answer: D) Consumer Price Index. 15. North Face is a popular U.S. brand of adventure equipment, clothing, and accessories. Most of its apparel is produced in China. In which category would the value of these items appear? A) US GDP. B) China's GDP. C) U.S GNP. D) In both U.S. GNP and China GDP. Show Answer Correct Answer: D) In both U.S. GNP and China GDP. 16. Which of the following policy choices represents a combination of fiscal and monetary policies designed to bring the economy out of a recession? A) Decreasing both taxes and money supply. B) Increasing both taxes and the money supply. C) Increasing government spending and decreasing the federal funds rate. D) Increasing both taxes and discount rate. Show Answer Correct Answer: C) Increasing government spending and decreasing the federal funds rate. 17. The study of how the entire economy work is what? A) Macroeconomics. B) Microeconomics. C) None of the above. D) All of the above. Show Answer Correct Answer: A) Macroeconomics. 18. Which of the following are included in the unemployment rate? A) Workers who have given up seeking a new job. B) Adults who have retired. C) Laid-off workers seeking new employment. D) Part-time workers seeking full-time jobs. Show Answer Correct Answer: C) Laid-off workers seeking new employment. 19. What is absolute advantage? A) A government tax. B) When a company can make more stuff than competitors using the same amount of resources. C) When a company raises their prices. D) When a company lowers their prices. Show Answer Correct Answer: B) When a company can make more stuff than competitors using the same amount of resources. 20. Which of the following would be included in ( i.e., add to) US GDP? A) All of the above. B) The value of cars produced by General Motors in its Mexico City Plant and purchased by a person by Detroit, Michigan. C) A government expenditure on transfer payments such as social security benefits received by Granny. D) Purchases by local government in police cars built by Hyundai in its Montgomery, Alabama plant. Show Answer Correct Answer: D) Purchases by local government in police cars built by Hyundai in its Montgomery, Alabama plant. 21. How would an increase in consumer spending affect aggregate demand? A) AD would shift to the right. B) AD would shift to the left. C) AD would decrease. D) AD would not change. Show Answer Correct Answer: A) AD would shift to the right. 22. Why are entrepreneurs called "risk takers" ? A) Because they combine productive resources to start a new business. B) Because they will be successful in their business no matter what happens. C) Because they are charged more taxes than other people that own their own business. D) Because they invest time or money that may or may not come back. Show Answer Correct Answer: D) Because they invest time or money that may or may not come back. 23. Aggregate demand may be measured by adding A) Consumption, investment, savings, and imports. B) Savings, government spending, and business inventories. C) Consumption, investment, government spending, and net exports. D) Domestic private expenditures and government spending. E) Domestic expenditures and imports. Show Answer Correct Answer: C) Consumption, investment, government spending, and net exports. 24. Expansionary fiscal policy will be most effective in increasing real gross domestic product when A) The aggregate supply curve is horizontal. B) The economy is at or above full-employment output. C) Transfer payments are decreased, while taxes remain unchanged. D) Wages and prices are very flexible. E) The Federal Reserve simultaneously increases the reserve requirement. Show Answer Correct Answer: A) The aggregate supply curve is horizontal. 25. This type of money is valuable because it is made of something valuable. A) Commodity money. B) Representative money. C) Fiat money. D) None of above. Show Answer Correct Answer: A) Commodity money. 26. Which market represents the buying and selling of factors of production? A) Product Market. B) Factor Market. C) Labor Market. D) Capital Market. Show Answer Correct Answer: B) Factor Market. 27. Macroeconomic behavior is the sum of all the microeconomic decisions made by individual households and firms. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 28. A higher GDP generally correlates to a(n) ..... standard of living. A) Higher. B) Lower. C) Unrelated. D) None of above. Show Answer Correct Answer: A) Higher. 29. The process by which banks increase the money supply is known as money creation. The amount by which the money supply can increase depends on their liquidity ratio. If the bank decides to hold a lower liquidity ratiom the bank multiplier will ..... A) Increase. B) Reduce. C) Stay the same. D) None of above. Show Answer Correct Answer: A) Increase. 30. When people pay the same percentage regardless of income it is A) A progressive tax. B) A proportional tax. C) A regressive tax. D) None of above. Show Answer Correct Answer: B) A proportional tax. ← 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