This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 174 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 174 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If consumption function is C = 250 + 0.75Y and investment is I = RM450, find the equilibrium income in this two sector economy. A) RM7200. B) RM2800. C) RM3600. D) RM9000. Show Answer Correct Answer: B) RM2800. 2. The economic choices made by individuals, businesses, and governments and the interactions of those choices answer which three major economic questions? A) What?, How?, and Why?. B) What?, How?, and For Whom?. C) Why?, How much?, and At what price?. D) At what price?, What?, and Why?. Show Answer Correct Answer: B) What?, How?, and For Whom?. 3. If general prices go up 10, 000% in a year, this would be an example of A) Deflation. B) Supply Curve. C) Inflation. D) Hyperinflation. Show Answer Correct Answer: D) Hyperinflation. 4. Mike is a fifty-five year old father of two who has been working part-time while raising his kids. He has been looking for full time work without success for over a year. A) Labor Force. B) Unemployed. C) Not in the labor force. D) Employed. Show Answer Correct Answer: D) Employed. 5. Which of the following measurement indicate the national income distribution? A) NNP. B) Per Capita Income. C) GDP. D) GNP. Show Answer Correct Answer: B) Per Capita Income. 6. What is the name of the "central bank" of the United States? A) The Federal Reserve. B) The Federal Bank of America. C) U.S. Congressional Bank. D) Bank of the U.S. Show Answer Correct Answer: A) The Federal Reserve. 7. Is how much money each bank is required by the Fed to keep on hand. A) Money supply. B) Check clearing. C) Reserve requirement. D) Interest rate. Show Answer Correct Answer: C) Reserve requirement. 8. Laissez-faire market economies have heavy government regulation. A) True. B) False. Show Answer Correct Answer: B) False. 9. ..... are taxes on imports. A) Foreign Exchange Controls. B) Import Quota. C) Tariffs. D) Protectionism. Show Answer Correct Answer: C) Tariffs. 10. A rise in the general price level of final goods and services A) Stagflation. B) Aggregate Supply. C) Inflation. D) Aggregate Demand. Show Answer Correct Answer: C) Inflation. 11. Which of the following causes movement along the short run Phillips curve? A) Any changes to aggregate supply. B) Any changes to aggregate demand. C) Any changes in frictional or structural unemployment. D) All of the above. Show Answer Correct Answer: B) Any changes to aggregate demand. 12. The natural rate of unemployment is equal to A) Frictional plus seasonal. B) Cyclical plus structural. C) Frictional plus cyclical. D) Structural plus frictional. Show Answer Correct Answer: D) Structural plus frictional. 13. How would a balanced budget amendment change the effect of automatic stabilizer programs? A) A balanced budget amendment would increase the government's ability to use deficit spending to stimulate the economy during downturns. B) A balanced budget amendment would have no impact on the government's ability to use deficit spending to stimulate the economy during downturns. C) A balanced budget amendment would make automatic stabilizer programs more effective in stabilizing the economy during downturns. . D) A balanced budget amendment would limit the government's ability to use deficit spending to stimulate the economy during downturns. Show Answer Correct Answer: D) A balanced budget amendment would limit the government's ability to use deficit spending to stimulate the economy during downturns. 14. Silicon Valley in California and Research Triangle Park in North Carolina are both evidence of what trend over the last few decades? A) The importance of the U.S. technology industry. B) The impact of downsizing in the South and West. Show Answer Correct Answer: A) The importance of the U.S. technology industry. 15. Inflation is important to cosider when revising a personal budget. A) True. B) False. Show Answer Correct Answer: A) True. 16. A situation in which the quantity supplied is greater than the quantity demanded is A) A surplus. B) A shortage. C) A price ceiling. D) A price floor. Show Answer Correct Answer: A) A surplus. 17. Which of the following will remain unchanged when the price level decreases? A) Inflationary expectations. B) Aggregate quantity demanded. C) Long-run aggregate supply. D) Nominal wages. E) Nominal output. Show Answer Correct Answer: C) Long-run aggregate supply. 18. ..... is an important instrument of short term borrowing by the government. A) National saving certificate. B) Bonds. C) Treasury bills. D) All of the above. Show Answer Correct Answer: C) Treasury bills. 19. In the book Capitalism, Socialism, and Democracy, ..... described capitalism as a " perennial gale of creative destruction " A) Friedrich Hayek. B) Joseph Schumpeter. C) Milton Friedman. D) John Maynard Keynes. Show Answer Correct Answer: B) Joseph Schumpeter. 20. Statement which describes how the world should be A) Opportunity cost. B) Positive statement. C) Normative statement. D) Marginal analysis. Show Answer Correct Answer: C) Normative statement. 21. It is the study of the nations economy as a whole. A) Microeconomics. B) Macroeconomics. C) National output. D) National economy. Show Answer Correct Answer: B) Macroeconomics. 22. The inventory-sales ratio is most likely to be rising: A) As a contraction unfolds. B) Partially into a recovery. C) Near the top of an economic cycle. D) None of above. Show Answer Correct Answer: C) Near the top of an economic cycle. 23. The book "General Theory of Employment, Interest and Money" was published in A) 1963. B) 1936. C) 1863. D) 1836. Show Answer Correct Answer: B) 1936. 24. Money allows for the ..... and ..... pricing of goods and services A) Ease and Useage. B) Precise and Flexible. C) Barter and Trading. D) Confusion and Insults. Show Answer Correct Answer: B) Precise and Flexible. 25. Inflation is characterized by: A) Falling prices for goods and services. B) Stable prices over time. C) Prices increasing for things people buy. D) No change in prices. Show Answer Correct Answer: C) Prices increasing for things people buy. 26. The interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve's discount window A) GDP. B) CPI. C) Peak. D) Discount Rate. Show Answer Correct Answer: D) Discount Rate. 27. Higher Non-Performing Assets in a branch can possibly be an indicator of: A) Omitted credit risk. B) Increase in future loan disbursals. C) Lower amounts of loan disbursals in past. D) Efficient management practices. Show Answer Correct Answer: A) Omitted credit risk. 28. Suppose an economy is currently at the full employment level of output. Assume the government then undertakes expansionary fiscal policy. Based on the AD/AS model, what would we expect to be the most likely outcome of this policy in the short run? A) An increase in output but little change in inflation. B) A decrease in inflation but little change in output. C) An increase in inflation but little change in output. D) A decrease in output but little change in inflation. E) A large increase in output and a large increase in inflation. Show Answer Correct Answer: C) An increase in inflation but little change in output. 29. If the government is concerned about unemployment, which tool would they use? A) Increase discount rate. B) Increase taxes. C) Increase spending. D) Increase reserve requirement. Show Answer Correct Answer: C) Increase spending. 30. Which of the following is not a component of aggregate demand in a two-sector economy? A) Consumption. B) Government expenditure. C) Investment. D) None of above. Show Answer Correct Answer: B) Government expenditure. ← 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