This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 173 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 173 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The tendency of a family to imitate the consumption pattern of neighbouring families is called ..... A) Rachet effect. B) Keynes effect. C) Neighbourhood effect. D) Demonstration effect. Show Answer Correct Answer: D) Demonstration effect. 2. Macroeconomics is associated with the fluctuation of the general price level in the country. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 3. In one year, spending on consumption, investment, and government purchases was equal to 103 percent of acountry's gross domestic product. This would be possible only if A) Net exports were negative. B) The money supply increased. C) Net exports were positive. D) The government had a balanced budget. E) The government ran a budget surplus. Show Answer Correct Answer: A) Net exports were negative. 4. Which one of the following would be the most appropriate stabilization policy if the economy is operating beyond its long-run potential capacity? A) A reduction in taxes, holding government purchases constant. B) A reduction in reserve requirements. C) An increase in government purchases, holding taxes constant. D) The Fed sells government bonds to the public in the nation's bond market. Show Answer Correct Answer: D) The Fed sells government bonds to the public in the nation's bond market. 5. Fiscal policy:tax cut A) Shifts LM curve to left. B) Shifts LM curve to right. C) Shifts IS curve to left. D) Shifts IS curve to right. Show Answer Correct Answer: D) Shifts IS curve to right. 6. Cost of production is one of the factors affecting ..... A) AS CURVE. B) AD CURVE. Show Answer Correct Answer: A) AS CURVE. 7. A government wants to increase the economy's rate of long-run economic growth by implementing a supply-side policy. Which one of the following is a government policy aimed at stimulating the supply side of the economy? A) Measures to promote competition between businesses. B) More generous welfare benefits for unemployed workers. C) A new scheme to help young people buy their own homes. D) Greater provision of care homes for the elderly. Show Answer Correct Answer: A) Measures to promote competition between businesses. 8. This type of businesses raises large amounts of capital (money that can be used to invest in the business) through the selling of stocks A) Partnership. B) Corporation. C) Sole proprietorship. D) None of above. Show Answer Correct Answer: B) Corporation. 9. Someone without a job a job who has quit looking A) Seasonal Unemployment. B) Structural Unemployment. C) Discouraged Worker. D) Intermediate Goods. Show Answer Correct Answer: C) Discouraged Worker. 10. A diagram shows an inward shift in the aggregate demand curve for an economy. A fall in the price level of 0P to 0P1 could be explained by an increase in A) Money wages. B) Inward investment. C) Labour productiivity. D) Interest rates. Show Answer Correct Answer: D) Interest rates. 11. If you buy pizza from a restaurant instead of making the identical product at home, how have you impacted GDP? A) GDP increases. B) GDP decreases. C) GDP cannot be measured. D) GDP remains unchanged. Show Answer Correct Answer: A) GDP increases. 12. The unemployment rate equals A) (labor force-employed) / labor force. B) Labor force/population. C) (employed-unemployed)/labor force. D) Unemployed/employed. Show Answer Correct Answer: A) (labor force-employed) / labor force. 13. A permanent reduction in demand for a single product will cause A) Cyclical unemployment. B) Voluntary unemployment. C) Structural unemployment. D) Frictional unemployment. Show Answer Correct Answer: C) Structural unemployment. 14. ..... companies that produce more can utilize mass production techniques and spread out fixed costs over many units A) Productivity. B) Marginal cost. C) Economies of scale. D) None of above. Show Answer Correct Answer: C) Economies of scale. 15. Which of the following is not the result of increase in economic welfare, when the national income increases? A) Reduction in Price Level. B) Increase in subsidy spending by the government. C) Rational increase in taxes on the rich. D) Increased production in the defense sector at the cost of other sector. Show Answer Correct Answer: D) Increased production in the defense sector at the cost of other sector. 16. Is this counted in the GDP of the US?Cars made by a Japanese company in California. A) No. B) Yes. Show Answer Correct Answer: B) Yes. 17. What is a producer? A) Someone who makes and sells goods and services. B) Someone who buys and uses goods and services. C) Someone who thinks of ideas about goods and services. D) Someone who enjoys the use of goods and services. Show Answer Correct Answer: A) Someone who makes and sells goods and services. 18. What body of the Federal Reserve oversees the purchase and sale of government securities/bonds? A) Federal Open Market Committee. B) Advisory Council. C) Board of Governors. D) Federal Reserve Bank of Dallas. Show Answer Correct Answer: A) Federal Open Market Committee. 19. When does deflation occur? A) When the inflation rate rises above 0%. B) When Mr. King gets mad. C) When the inflation rate falls below 0%. D) When Mr. King is happy. Show Answer Correct Answer: C) When the inflation rate falls below 0%. 20. In the circular flow model, what do individuals receive from businesses in return for their labor? A) Services. B) Money. C) Resources. D) D Goods. Show Answer Correct Answer: B) Money. 21. Standard of living A) GDP on a per-person basis; GDP divided by population. B) Material well-being of an individual, measured by how well their needs and wants are satisfied. C) How the government uses taxes and spending to reach economic goals. D) Purchase or sale of U.S. government bonds and treasury bills. Show Answer Correct Answer: B) Material well-being of an individual, measured by how well their needs and wants are satisfied. 22. Unemployment that is directly related to swings in the business cycle is A) Structural unemployment. B) Cyclical unemployment. C) Frictional unemployment. D) Seasonal unemployment. Show Answer Correct Answer: B) Cyclical unemployment. 23. What can Congress do to enable crowding in to take place? A) Decrease reserve requirement ratios. B) Increase government spending. C) Increase taxes. D) None of above. Show Answer Correct Answer: C) Increase taxes. 24. Which of the following terms refers to the trade between countries and markets around the world? A) Global Economy. B) GDP. C) Macroeconomics. D) Inflation. Show Answer Correct Answer: A) Global Economy. 25. Which of the following is an example of structural unemployment? A) A construction worker who is always unemployed during the winter months. B) An autoworker who is replaced by a robot. C) A worker who loses his job during a recession. D) A computer programmer who leaves her job to move to Florida. E) A worker who is engaged in unproductive work. Show Answer Correct Answer: B) An autoworker who is replaced by a robot. 26. In the circular flow diagram of a market economy, which of the following supplies the factors of production? A) The government. B) The foreign sector. C) Financial sector. D) The business sector. E) The household sector. Show Answer Correct Answer: E) The household sector. 27. Currency that is based on common agreement and is not backed by a commodity or specie, for instance, paper dollars in the United States. A) Specie Money. B) Fiat Money. C) Interest. D) Commodity Money. E) Loan. Show Answer Correct Answer: B) Fiat Money. 28. Which of the following causes of inflation is often described as "too much money chasing too few goods" ? A) Demand-pull inflation. B) Cost-push inflation. C) Demand-push inflation. D) Cost-pull inflation. Show Answer Correct Answer: A) Demand-pull inflation. 29. Which of the following transactions would represent an addition to a nation's current gross domestic product? A) The government increases its domestic purchases of food for use by the military. B) A retailer increases her stock of imported shoes. C) A corporation sells shoes from last year's inventory. D) A mother sells her car to her daughter. E) Ms. Smith purchases a share of stock in an automobile company. Show Answer Correct Answer: A) The government increases its domestic purchases of food for use by the military. 30. Which of the following would be the FIRST change to occur when a central bank conducts open market purchases of bonds? A) Aggregate demand increases. B) Bank reserves increase. C) The money supply increases. D) The monetary supply decreases. E) The interest rate decreases. Show Answer Correct Answer: B) Bank reserves increase. ← 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