This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 171 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 171 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The exchange rate in the gold standard (dinar) is relatively stable..... A) Correct. B) Salah. Show Answer Correct Answer: A) Correct. 2. All of the following might reasonably be expected to shift the demand curve for beef to a new position except A) A decrease in the price of beef. B) A change in people's tastes with respect to beef. C) An increase in the money incomes of beef consumers. D) Expectations that beef prices will fall in the future. Show Answer Correct Answer: A) A decrease in the price of beef. 3. Point "F" represents which phase of the business cycle? A) Contraction. B) Trough. C) Expansion. D) Recovery. E) Peak. Show Answer Correct Answer: B) Trough. 4. Which of the following changes would cause a balanced budget to move to a budget surplus? A) A decrease in national income. B) An increase in government spending. C) An increase in transfer payments. D) A decrease in transfer payments. E) A decrease in tax revenue. Show Answer Correct Answer: D) A decrease in transfer payments. 5. Which of the following will happen if the actual inflation rate is greater than the expected inflation rate? A) Borrowers of fixed interest rate loans will be worse off. B) Borrowers of variable interest rate loans will be better off. C) Lenders of variable interest rate loans will be worse off. D) Borrowers of fixed interest rate loans will be better off. E) Lenders of fixed interest rate loans will be better off. Show Answer Correct Answer: D) Borrowers of fixed interest rate loans will be better off. 6. A Japanese car company makes a new sedan in its Sriperumbudur plant, Chennai. Which country's GDP is this added to? A) India. B) US. C) Japan. D) Both India and Japan. Show Answer Correct Answer: A) India. 7. An examination of federal (national) tax policy for businesses is an example of which field? A) Microeconomics. B) Macroeconomics. Show Answer Correct Answer: B) Macroeconomics. 8. What is the Federal Reserve's primary goal? A) To keep inflation at a low and steady rate. B) To have full employment. C) Economic growth. D) Economic Freedom. Show Answer Correct Answer: A) To keep inflation at a low and steady rate. 9. If aggregate output equals planned aggregate expenditure, then A) Actual investment is greater than planned investment. B) Unplanned inventory investment is zero. C) Unplanned inventory adjustment is positive. D) Unplanned inventory adjustment is negative. Show Answer Correct Answer: B) Unplanned inventory investment is zero. 10. Which of the following is a cause of cost-push inflation? A) A rise in the price of housing. B) A rise in the cost of transporting goods. C) An increase in money supply. D) An increase in government expenditure on pensions. Show Answer Correct Answer: B) A rise in the cost of transporting goods. 11. Which import does the United States MOST depend on to increase its industrial productivity A) Energy resources. B) Manufactured goods. C) Computer technology. D) Raw materials. Show Answer Correct Answer: A) Energy resources. 12. The federal reserve has ..... regional Federal Reserve Banks and ..... on the Federal Reserve Board of Governors. A) 8 banks; 12 members. B) 12 banks; 8 members. C) 8 banks; 8 members. D) 12 banks; 12 members. Show Answer Correct Answer: B) 12 banks; 8 members. 13. It is studying small economic units? A) Ergonomics. B) Economics. C) Macroeconomics. D) Microeconomics. Show Answer Correct Answer: D) Microeconomics. 14. The highest point between the end of an economic expansion and the start of a contraction in a business cycle A) Trough. B) Peak. C) GDP. D) CPI. Show Answer Correct Answer: B) Peak. 15. Most government spending is ..... A) Discretionary. B) Mandatory. C) Pork-ly (?). D) Arbitrative. Show Answer Correct Answer: B) Mandatory. 16. The macdonald is the macroeconomics A) True. B) False. Show Answer Correct Answer: A) True. 17. Fiscal policy that is the direct result of deliberate actions by policymakers rather than automatic adjustments A) Expansionary Fiscal Policy. B) Contractionary Fiscal Policy. C) CPI. D) Discretionary Fiscal Policy. Show Answer Correct Answer: D) Discretionary Fiscal Policy. 18. The income, property, good, or service that is subject to a tax is known as ..... A) Tax Structure. B) Taxable Income. C) FICA Tax. D) Tax Base. Show Answer Correct Answer: D) Tax Base. 19. Workers temporarily unemployed but who normally find jobs quickly are called A) Frictionally unemployed. B) Cyclically unemployed. C) Seasonally unemployed. D) Structurally unemployed. Show Answer Correct Answer: A) Frictionally unemployed. 20. Changes in price level A) Shift the AD curve right (increase). B) Move along the AD curve. C) Shift the AD curve left (decrease). D) Shift the AS curve right (increase). E) Shift the AS curve left (decrease). Show Answer Correct Answer: B) Move along the AD curve. 21. Derives its value from the type of material from which it is composed A) Commodity Market. B) Representative Market. C) Fiat Money. D) Gold Standard Money. Show Answer Correct Answer: A) Commodity Market. 22. All of the following are examples of direct tax except ..... A) Personal income tax. B) Stamp duties. C) Company tax. D) Services tax. Show Answer Correct Answer: D) Services tax. 23. For most students, the largest single "cost" of a college education is: A) The wages given up to attend school. B) Tuition, fees, and books. C) Room and board. D) Transportation, parking, and entertainment. Show Answer Correct Answer: A) The wages given up to attend school. 24. Earning interest on interest is called A) Inflation Interest. B) Simple Interest. C) Extra Interest. D) Compound Interest. Show Answer Correct Answer: D) Compound Interest. 25. Why is the Federal Open Market Committee (FOMC) essential to US monetary policy? A) The FOMC works to reduce the federal deficit. B) The FOMC monitors the actions of financial institutions. C) The FOMC is responsible for approving the federal budget. D) The FOMC oversees open market operations. Show Answer Correct Answer: D) The FOMC oversees open market operations. 26. The U.S. National debt is an immediate cataclysmic event that could topple the government any day now A) True. B) False. Show Answer Correct Answer: B) False. 27. Which of the following creates a shortage of products? A) Price ceiling. B) Price floor. C) Market price. D) Equilibrium price. Show Answer Correct Answer: A) Price ceiling. 28. If Isaiah loses his job at the Ford plant because car manufacturing is slow due to a downturn in the economy, you can conclude that he is A) Frictionally Unemployed. B) Structurally Unemployed. C) Seasonally Unemployed. D) Cyclically Unemployed. Show Answer Correct Answer: D) Cyclically Unemployed. 29. ONE of the following DOES NOT shift the AD curve A) Wages. B) Monetary policy. C) Fiscal policy. D) Exchange rate. E) Consumer and Investment sentiments. Show Answer Correct Answer: A) Wages. 30. What is the aggregate supply curve? A) The aggregate supply curve represents the total amount of goods and services that firms are willing to produce and sell at the same price level in an economy. B) The aggregate supply curve represents the total amount of goods and services that firms are willing to produce and sell at different price levels in an economy. C) The aggregate supply curve represents the total amount of goods and services that firms are willing to produce and sell at different price levels in a specific industry. D) The aggregate supply curve represents the total amount of goods and services that consumers are willing to purchase at different price levels in an economy. Show Answer Correct Answer: B) The aggregate supply curve represents the total amount of goods and services that firms are willing to produce and sell at different price levels in an economy. ← 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