This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 165 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 165 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Policies involving government intervention to overcome market failure. For example, higher government spending on education, housing and transport infrastructure A) Supply-side policies (interventionist). B) Supply-side policies (free market). C) Monetary policy. D) Fiscal policy. Show Answer Correct Answer: A) Supply-side policies (interventionist). 2. Over the economic cycle the government will only borrow for capital spending and not to fund current spending A) The golden rule (Gordon Brown 1997). B) The normal times rule (George Osborne 2015). C) The sustainable investment rule (EU). D) The arbitrary household budget fallacy rule (Post-Keynesians). Show Answer Correct Answer: A) The golden rule (Gordon Brown 1997). 3. GDP evaluated at current market prices is called as ..... A) Real GDP. B) Total GST. C) Nominal GDP. D) Aggregate Demand. Show Answer Correct Answer: C) Nominal GDP. 4. A tax where people with less income/wealth pay a higher percentage of that income/wealth than people with more income/wealth. Sales tax and Gas taxes are examples of this. A) Proportional tax. B) Monetary policy. C) Progressive tax. D) Fiscal policy. E) Regressive tax. Show Answer Correct Answer: E) Regressive tax. 5. The part of the Business Cycle where unemployment is at its lowest is called: A) Recovery. B) Recession. C) Trough. D) Boom. Show Answer Correct Answer: D) Boom. 6. Which of the following is not true about the limitations of GDP as a measure of welfare? A) Household productions are not included in GDP. B) Health and life expectancy is not considered in GDP. C) Leisure time is not measured in GDP. D) Marketable transactions are not accounted in GDP. Show Answer Correct Answer: D) Marketable transactions are not accounted in GDP. 7. ..... is the amount of output that can be achieved with a given amount of factor inputs. A) Increasing Returns Productivity. B) Growth Accounting. C) Total Factor Productivity. D) Disaggregate Factor Productivity. Show Answer Correct Answer: C) Total Factor Productivity. 8. When the Government saves more than it spends A) Budget Surplus. B) Price Level. C) Budget Deficit. D) Budget. Show Answer Correct Answer: A) Budget Surplus. 9. Public debt is also known as ..... A) Public management. B) Public borrowing. C) Public services. D) Public expenditure. Show Answer Correct Answer: B) Public borrowing. 10. Products that we usually use/consume together. A) Complements. B) Substitutes. C) Pairs. D) Related goods. Show Answer Correct Answer: A) Complements. 11. An recent college graduate just entering the work force and searching for a job would be experiencing ..... unemployment. A) Structural. B) Frictional. C) Seasonal. D) Cyclical. Show Answer Correct Answer: B) Frictional. 12. Which type of economy has central ownership, the government, and lack of individual choice? A) Market. B) Mixed. C) Command. D) Traditional. Show Answer Correct Answer: C) Command. 13. The three primary roles of Federal Reserve Banks areproviding economic analysis, delivering financial services to banks and ..... A) Cashing checks for customers. B) Adjusting interest rates. C) Supervising banks. D) Opening and closing banks. E) Loaning money to customers to buy new cars. Show Answer Correct Answer: C) Supervising banks. 14. Keynes is famous for saying: A) "Speak softly but carry a big stick.". B) "Nobody can kid a kidder.". C) "In the long run, we are all dead.". D) "Eat at Joe's.". Show Answer Correct Answer: C) "In the long run, we are all dead.". 15. Monetary policy is changes in the money supply or credit conditions designed to achieve macroeconomic goals. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 16. All of the following are essential functions of money except ..... A) Allowing big shots to make it rain. B) Serves as a store of value. C) Serves as a unit of account. D) Helps facilitates trade. Show Answer Correct Answer: A) Allowing big shots to make it rain. 17. Based on the AD/AS model, in which of the following situations is stagflation most likely to occur? A) A decrease in output and an increase in inflation. B) A decrease in output and a decrease in inflation. C) An increase in output and an increase in inflation. D) An increase in output and a decrease in inflation. E) An increase in output and no change in inflation. Show Answer Correct Answer: D) An increase in output and a decrease in inflation. 18. Unemployment caused by decreased demand for lifeguards during the winter. A) Frictional. B) Cyclical. C) Structural. D) Seasonal. Show Answer Correct Answer: D) Seasonal. 19. The remittances of the Overseas Filipino Workers (OFW) originate from this sector A) BANKS. B) INTERNATIONAL TRADE. C) FIRMS. D) HOUSEHOLDS. E) GOVERNMENT. Show Answer Correct Answer: B) INTERNATIONAL TRADE. 20. Money helps us buy things quickly. What role is this? A) Store of value. B) Medium of exchange. C) Unit of account/standard of value. D) None of above. Show Answer Correct Answer: B) Medium of exchange. 21. A tax that takes the same percentage of income from all income groups, such as sales tax, is an example of a ..... A) Progressive Tax. B) Proportional Tax. C) Regressive Tax. D) Excise Tax. Show Answer Correct Answer: B) Proportional Tax. 22. As per Social Progress Index, safety is a ..... A) Basic human need. B) Foundations of well-being. C) Opportunity. D) Socio-economic factor. Show Answer Correct Answer: A) Basic human need. 23. The human effort involved in the production of goods and services is known as: A) Capital. B) Entrepreneurship. C) Labor. D) Land. Show Answer Correct Answer: C) Labor. 24. Macroeconomics is concerned with the market price and equilibrium quantity of each good or service. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 25. How a state decides on unemployment compensation levels A) Microeconomic. B) Macroeconomics. Show Answer Correct Answer: A) Microeconomic. 26. The enterprising spirit that allows an individual to spot gaps in the market and take risks (including starting a business): A) Entrepreneurship. B) Capital. C) Land. D) Labor. Show Answer Correct Answer: A) Entrepreneurship. 27. Full form of GGDP? A) Green Global Depreciation Product. B) Gross Green Domestic Product. C) Green Gross Domestic Product. D) Global Green Depreciation Production. Show Answer Correct Answer: C) Green Gross Domestic Product. 28. Which feature is a quality of good tax? A) Divisibility. B) Durability. C) Convenience. D) Homogeneity. Show Answer Correct Answer: C) Convenience. 29. The payment of subsidies by the government is an example of A) Capital expenditure. B) Crowding out. C) Current expenditure. D) Transfer payments. Show Answer Correct Answer: D) Transfer payments. 30. Money is a "medium of exchange, " meaning A) It allows people to have jobs. B) It tells us what things are worth. C) It can be used to purchase goods and services. D) It can be used to save for purchasing things at a later date. Show Answer Correct Answer: C) It can be used to purchase goods and services. ← 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