This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 164 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 164 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following refers to a regressive tax? A) Tax rates differ from the income. B) Tax rates are positively related to the income. C) Tax rates are positively correlated with the interest rates. D) Tax rates are not dependent on the income. Show Answer Correct Answer: A) Tax rates differ from the income. 2. Countries become ..... when trade and competition among countries increases. A) Interdependent. B) Greedy. C) Cheap. D) None of above. Show Answer Correct Answer: A) Interdependent. 3. An increase in the price of raw materials causes a ..... inflation A) Cost push. B) Profit push. C) Import push. D) Demand pull. Show Answer Correct Answer: A) Cost push. 4. Expansionary fiscal policy under fixed exchange rates A) Shifts IS* curve rightto maintain fixed exchange rate Fed increases money supply, shifting LM* curve right, raising income. B) Shifts IS* curve rightto maintain fixed exchange rate Fed decreases money supply, shifting LM* curve right, raising income. C) Shifts IS* curve leftto maintain fixed exchange rate Fed decreases money supply, shifting LM* curve right, raising income. D) Shifts IS* curve leftto maintain fixed exchange rate Fed increases money supply, shifting LM* curve right, raising income. Show Answer Correct Answer: A) Shifts IS* curve rightto maintain fixed exchange rate Fed increases money supply, shifting LM* curve right, raising income. 5. Unemployment caused by lack of skills or demand A) Structural Unemployment. B) Discouraged Workers. C) Seasonal Unemployment. D) Frictional Unemployment. Show Answer Correct Answer: A) Structural Unemployment. 6. Which of the following is studied in Macroeconomics? A) Individual output. B) Individual income. C) Individual savings. D) General price level. Show Answer Correct Answer: D) General price level. 7. The ..... between two countries' currencies is the nominal exchange rate at which a given basket of goods and services would cost the same amount in each country. A) Nominal Exchange Rate. B) Purchasing Power Parity. C) CPI Currency Rate. D) Aggregate Exchange Rate. Show Answer Correct Answer: B) Purchasing Power Parity. 8. Which of the following is a macroeconomics study? A) Price of luxury car. B) Unemployment rate in the country. C) Production methods and cost. D) Demand for smartphone. Show Answer Correct Answer: B) Unemployment rate in the country. 9. The ..... is the ratio of nominal GDP to the money supply. It is a measure of the number of times the average dollar bill is spent per year. A) Velocity of Money. B) Volume of Money. C) Inertia of Money. D) Density of Money. Show Answer Correct Answer: A) Velocity of Money. 10. Which of the following is defined as a business in which partners have an unequal share and liability in the business? A) Limited partnership. B) General partnership. C) Franchise partnership. D) Sole partnership. Show Answer Correct Answer: A) Limited partnership. 11. Which is the protectionism tools below related with Tariff? A) Minimum quantity. B) Control exchange rate. C) Physical control. D) Imported tax. Show Answer Correct Answer: D) Imported tax. 12. To stop inflation from happening, what policy could the GOVERNMENT do? A) Increase Taxes, Decrease Spending. B) Lower the RRR, DR, IOR. C) Raise the RRR, DR, IOR. D) Decrease Taxes, Increase Spending. Show Answer Correct Answer: A) Increase Taxes, Decrease Spending. 13. If the exchange rate of currency A is fixed to a unit of currency B, then a potential problem for the central bank in charge of currency A is: A) Generating excessive revenue from seigniorage. B) Running out of currency B. C) Running out of currency A. D) Ineffective fiscal policy. Show Answer Correct Answer: B) Running out of currency B. 14. The following information is related to a formula in the economy:X = Full employment + Unemployment A) Labour force. B) Total population. C) The number of people who are actively looking for a job. D) The number of people aged between 20 to 70 years old. Show Answer Correct Answer: A) Labour force. 15. What is likely to be the effect of a fall in oil prices on the global economy? A) A decrease in the rate of economic growth. B) A decrease in unemployment. C) A strengthening of cost-push inflation. D) A weakening of demand-pull inflation. Show Answer Correct Answer: B) A decrease in unemployment. 16. Leakages in the circular flow of income refer to ..... A) Exports, savings and taxes. B) Savings, taxes and imports. C) Government spending, exports and imports. D) Investment, government spending and exports. Show Answer Correct Answer: B) Savings, taxes and imports. 17. A rise in the cost of goods and services A) Inflation. B) Discount rate. C) Interest. D) Monetary policy. Show Answer Correct Answer: A) Inflation. 18. Which one of the following types of household is most likely to spend the highest proportion of its disposable income? A) Low income, young single parent with young children. B) High income, middle-aged with no children. C) High income, middle-aged couple with two grown-up children. D) Middle income, young single person with no children. Show Answer Correct Answer: A) Low income, young single parent with young children. 19. The political branches of government play a large role in setting ..... A) Monetary Policy. B) Fiscal Policy. Show Answer Correct Answer: B) Fiscal Policy. 20. Which is not a feature of Keynesian consumption function? A) As income increases, APC will also increase. B) In the short run, MPC remains constant. C) MPC is less than APC. D) Consumption is a positive function of income. Show Answer Correct Answer: A) As income increases, APC will also increase. 21. What is meant by a regressive tax? A) One which is earning less tax revenue than previously. B) One designed to create a more even distribution of income. C) One which takes a larger percentage of tax from the poor than the rich. D) One which is impossible to evade. Show Answer Correct Answer: C) One which takes a larger percentage of tax from the poor than the rich. 22. People can get more of what they want through trade than they could if they tried to be self-sufficient. A) False. B) True. Show Answer Correct Answer: B) True. 23. Almost all variation in living standards is attributable to differences in countries A) Taxes. B) Population growth rates. C) Degree of taxation. D) Systems of public education. E) Productivity. Show Answer Correct Answer: E) Productivity. 24. This is a measure of the value of all the goods and services produced within an area during a given period of time. A) Unemployment Rate. B) GDP Annual Growth Rate. C) Aggregate. D) Inflation Rate. E) Gross Domestic Product (GDP). Show Answer Correct Answer: E) Gross Domestic Product (GDP). 25. How much it costs to borrow money or how much you earn when you save money. A) Monetary Policy. B) Economic Growth. C) Trade Balance. D) Interest Rates. Show Answer Correct Answer: D) Interest Rates. 26. What type of economy is the United States? A) Pure Command Economy. B) Traditional Economy. C) Pure Market Economy. D) Mixed Economy. Show Answer Correct Answer: D) Mixed Economy. 27. Many older Americans have trouble finding jobs because they lack needed skills. What type of unemployment would this be considered? A) Seasonal Unemployment. B) Cyclical Unemployment. C) Frictional Unemployment. D) Structural Unemployment. Show Answer Correct Answer: D) Structural Unemployment. 28. The least amount of money you can pay on a credit card per month. A) Credit Limit. B) Minimum Payment. C) Annual Percentage Rate. D) Opportunity Cost. Show Answer Correct Answer: B) Minimum Payment. 29. What does the model of supply and demand illustrate? A) The relationship between the quantity of pizza demanded and the price of pizza. B) The relationship between the quantity of pizza supplied and the price of pizza. C) The equilibrium price and quantity of pizza. D) All of the above. Show Answer Correct Answer: D) All of the above. 30. A ..... bank is an institution that oversees and regulates the banking system and controls the monetary base. A) Federal. B) Regulatory. C) Central. D) Commercial. Show Answer Correct Answer: C) Central. ← 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