This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 175 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 175 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If Maria Escalera's disposable income increases from $ 600 to $ 650 and her level of personalconsumption expenditures increase from $ 480 to $ 520, you may conclude that her marginal propensity to A) Save is 0.8. B) Consume is 0.4. C) Consume is 0.8. D) Save is 0.4. Show Answer Correct Answer: C) Consume is 0.8. 2. Who is most likely to be hurt by inflation? A) A business owner. B) A retiree on a fixed income. C) Someone who borrowed money. D) The U.S. government. Show Answer Correct Answer: B) A retiree on a fixed income. 3. When a government it spending more money than it is making, it is operating in a ..... A) Deficit. B) Surplus. C) IOU. D) Interest. Show Answer Correct Answer: A) Deficit. 4. Which type of economic system is it when the market decides what needs to be produced, private businesses decide how to produce, and consumers decide what they are willing to pay for goods? A) Traditional. B) Command. C) Market. D) Mixed. Show Answer Correct Answer: C) Market. 5. Technology is one of the factors affecting ..... A) AD CURVE. B) AS CURVE. Show Answer Correct Answer: B) AS CURVE. 6. Business cycles are more stable if A) The government consistently passes stimulus money. B) The government raises taxes. C) Both banks and government set policies to meet the three economic goals. D) None of above. Show Answer Correct Answer: C) Both banks and government set policies to meet the three economic goals. 7. Unemployed plus employed A) Unemployment Rate. B) Labor Force. C) Unemployed. D) Total Population. Show Answer Correct Answer: B) Labor Force. 8. The CPI measures a ..... of goods and services. A) Shortage or surplus. B) Picnic basket. C) Market basket. D) Grocery cart. Show Answer Correct Answer: C) Market basket. 9. Emoluments, pensions and gratuities, debts, service charges and other types of expenditure are refer to ..... A) Social expenditure. B) Development expenditure. C) Government expenditure. D) Operating expenditure. Show Answer Correct Answer: D) Operating expenditure. 10. Unemployment that results from recessions would be considered ..... A) Cyclical. B) Frictional. C) Marginal. D) Structural. Show Answer Correct Answer: A) Cyclical. 11. Assume the economy is in long run equilibrium and the government increases spending on healthcare A) AD will shift right and an inflationary gap will result. B) AD will shift left and a recessionary gap will result. C) AS will shift right and an inflationary gap will result. D) AS will shift left and a recessionary gap will result. E) No change will result. Show Answer Correct Answer: A) AD will shift right and an inflationary gap will result. 12. What type of unemployment explains Santa Actors in January A) Unjust. B) Seasonal. C) Cyclical. D) Frictional. Show Answer Correct Answer: B) Seasonal. 13. GDP is a perfect statistic. A) False. B) True. Show Answer Correct Answer: A) False. 14. Acting as a banker to the commercial bank and establishing an effective monetary policy are the basic functions of A) Commercial banks. B) Merchant banks. C) Clearing house. D) Central bank. Show Answer Correct Answer: D) Central bank. 15. An increase in the number of discouraged workers causes the unemployment rate to A) Stay the same because the workers are still unemployed. B) Decrease while the labor-force participation rate stays the same. C) Increase while the labor-force participation rate decreases. D) Decrease along with the labor-force participation rate. E) Increase along with the labor-force participation rate. Show Answer Correct Answer: D) Decrease along with the labor-force participation rate. 16. Which of these is found MORE often in command economies than in market economies? A) Consumer sovereignty. B) Private ownership. C) Regulations. D) Competition. Show Answer Correct Answer: C) Regulations. 17. When the Fed increases the supply of money, the money supply curve shifts to the A) Right. B) Left. C) Down. D) Up. Show Answer Correct Answer: A) Right. 18. Supply curve of Foreign exchange: A) Horizontal straight line parallel to X-axis. B) Vertical straight line parallel to Y-axis. C) Slopes Downwards. D) Slopes Upwards. Show Answer Correct Answer: D) Slopes Upwards. 19. Consumption Function is the Functional Relation between A) Income and saving. B) Price level and consumption. C) Income and consumption. D) ALL OF THE ABOVE. Show Answer Correct Answer: C) Income and consumption. 20. An increase in..... interest rate will result in..... investment A) Nominal, increase. B) Nominal, decrease. C) Real, increase. D) Real, decrease. Show Answer Correct Answer: D) Real, decrease. 21. Isabella takes $ 100 of currency from her wallet and deposits it into her checking account. If the bank adds the entire $ 100 to reserves, the money supply ....., but if the bank lends out some of the $ 100, the money supply ..... A) Decreases; decreases by less. B) Unchanged; increases. C) Increases; increase by more. D) Increase; increases by less. Show Answer Correct Answer: B) Unchanged; increases. 22. If a nation limits their imports of clothing (ex:quota, standard, tariff) who will benefit? A) Department stores who sell clothing. B) Domestic Consumers of clothing. C) Domestic producers of clothing. D) Foreign Producers of clothing. Show Answer Correct Answer: C) Domestic producers of clothing. 23. In the AS/AD model, which curve is vertical? A) LRAS. B) SRAS. C) RGDP. D) AD. Show Answer Correct Answer: A) LRAS. 24. Factors that influence net capital outflow are..... A) The real interest rate paid on foreign assets. B) The cost of transporting goods from one country to another. C) Government policy towards international trade. D) Consumer income at home and abroad. Show Answer Correct Answer: A) The real interest rate paid on foreign assets. 25. Following a sharp increase in the price of energy, the overall price level is mostlikely to rise in the short run A) And remain elevated indefinitely unless the central bank tightens. B) But remain unchanged in the long run unless the money supply is increased. C) And continue to rise until all prices have increased by the same proportion. D) None of above. Show Answer Correct Answer: B) But remain unchanged in the long run unless the money supply is increased. 26. The setting of interest rates is an example of what? A) Globalization. B) Fiscal policy. C) Monetary policy. D) Treason. Show Answer Correct Answer: C) Monetary policy. 27. What layer of the earth are made of silicon, oxygen and aluminium A) Outer core. B) Inner core. C) Crust. D) Mantle. Show Answer Correct Answer: C) Crust. 28. If the Production possibilities curve (PPC) is concave from the origin (bowed out), then economists say that A) Resources are scarce in the economy. B) Resources are not equally suited for the production of both goods. C) Economic growth is occurring in the economy. D) Resources are being inefficiently used in the economy. E) Resources are equally suited for the production of either good. Show Answer Correct Answer: B) Resources are not equally suited for the production of both goods. 29. Reserve requirement A) Committee that makes decisions that affect the economy as a whole by manipulating the money supply. B) The percent of deposits that banks have to have set aside in cash at any given time. C) Manipulation of the money supply in attempts to keep the economy stable; implemented by the Federal Reserve. D) Interest rate that the Fed charges on its loans to member banks. Show Answer Correct Answer: B) The percent of deposits that banks have to have set aside in cash at any given time. 30. Reviews stock prices from 30 companies to determine the health of the stock market A) New York Stock Exchange. B) S & P 500. C) NASDAQ. D) Dow Jones. Show Answer Correct Answer: D) Dow Jones. ← 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