This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 19 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Equilibrium in macroeconomics refers to ..... A) Total value of output being produced more than total value of expenditure. B) Aggregate supply being greater than aggregate demand. C) Aggregate demand being greater than aggregate supply. D) Aggregate demand being equal to aggregate supply. Show Answer Correct Answer: D) Aggregate demand being equal to aggregate supply. 2. The central problem of economics and business is. of resources ..... A) Plenty. B) Scarcity. C) Variety. D) None of above. Show Answer Correct Answer: B) Scarcity. 3. Intermediate products and final products differ in: A) Uses. B) Is the material and is not the material. C) Consumption time. D) These sentences are wrong. Show Answer Correct Answer: A) Uses. 4. Your company has been bought out by a large corporation and they lay you off. This is an example of ..... A) Seasonal unemployment. B) Structural unemployment. C) Cyclical unemployment. D) Frictional unemployment. Show Answer Correct Answer: B) Structural unemployment. 5. Which tool of monetary policy matches this definition:The Fed votes to raise, lower, or keep the target for the Federal Funds Rate (FFR). The FFR is an indirect way for the Fed to affect unemployment, GDP and consumer price levels through the selling of bonds. (also the subject of our FOMC simulation) A) Reserve Requirement. B) Interest on Required and Excess Reserves. C) Discount Rate. D) Open Market Operations. Show Answer Correct Answer: D) Open Market Operations. 6. When replacing a certain item with with a less costly item is an example of A) The substitution effect. B) The income effect. C) Demand elasticity. D) Complements. Show Answer Correct Answer: A) The substitution effect. 7. In which of the economy leakages rise in circular flow of income? A) Three Sector. B) Closed. C) Two Sector. D) Open. Show Answer Correct Answer: A) Three Sector. 8. Take the number of unemployed people in the country divided by the number of people in the labor force and multiplying the quotient by 100. A) Unemployment rate. B) Unemployment growth. C) Employment rate. D) None of above. Show Answer Correct Answer: A) Unemployment rate. 9. According to the quantity theory of money, which of the following best describes what determines the rate of inflation in the long run? A) The growth of the price level. B) The growth of real GDP per capita. C) The rate of growth of the money supply. D) The rate of change of the velocity of money. E) The rate of inflation is constant in the long-run. Show Answer Correct Answer: C) The rate of growth of the money supply. 10. The idea that economic downturns result from an inadequate aggregate demand for goods and services is derived from the work of which economist? A) David Hume. B) Adam Smith. C) David Ricardo. D) John Maynard Keynes. Show Answer Correct Answer: D) John Maynard Keynes. 11. An increase in the real interest rate increases people's savings. A) Lie. B) True. Show Answer Correct Answer: B) True. 12. The trading or sharing of a hunted wildebeest in a tribal African village, is an example of what type of economic system? A) Market Economy. B) Traditional Economy. C) Command Economy. D) None of the Above. Show Answer Correct Answer: B) Traditional Economy. 13. Personal Income, Medicare, and Social Security are all what type of taxes? A) Federal. B) Local. C) Progressive. D) Payroll. Show Answer Correct Answer: D) Payroll. 14. A microeconomist-as opposed to a macroeconomist-might study A) The effect of borrowing by the federal government on the inflation rate. B) The effect of rising oil prices on employment in the airline industry. C) Changes in the nations unemployment rate over short periods of time. D) Alternative policies to promote higher living standards throughout the nation. E) The relationship between unemployment and inflation. Show Answer Correct Answer: B) The effect of rising oil prices on employment in the airline industry. 15. If a nation currently has a budget deficit, their income is not covering the cost of running their country and cuts may have to occur for public services and social welfare. If this budget is not revised, what could be a possible result of this situation? A) A budget surplus. B) A balanced budget. C) Growing deficits and debt. D) Discretionary fiscal policy. Show Answer Correct Answer: C) Growing deficits and debt. 16. What of the following does NOT enter GDP? A) Public service. B) Life expectancy. C) National defense. D) Public education. Show Answer Correct Answer: B) Life expectancy. 17. Which of the following statements about the simple circular flow model of a market economy is correct? A) Households are on the demand side of the product market and the supply side of the resource market. B) Business firms are on the supply side of both the product market and the resource market. C) Households receive income in the form of wages, and business firms receive income in the form of investment. D) Exports and investment expenditures are examples of leakage from the circular flow, whereas imports and savings are injections. E) Circular flow models are used primarily to explain why money is necessary in any economic system. Show Answer Correct Answer: A) Households are on the demand side of the product market and the supply side of the resource market. 18. The public sector includes: A) Investors owning companies. B) Government ownership of assets. C) Market forces of supply and demand. D) Private enterprise. Show Answer Correct Answer: B) Government ownership of assets. 19. Which of the following is a subject matter of Macroeconomics? A) Studies Employment & Unemployment. B) Determination of National Income. C) Promotes Economic Growth & Development. D) All of the above options. Show Answer Correct Answer: D) All of the above options. 20. When the government spends more money than they take in each year is called a ..... ? A) Surplus. B) Deficit. C) Debt. D) Expansionary. Show Answer Correct Answer: B) Deficit. 21. From the standpoint of economic growth, banks are important to: A) Fight inflation. B) Keep interest rates low. C) Channel savings into investment. D) Channel investment into savings. E) Facilitate the use of checking and savings accounts. Show Answer Correct Answer: C) Channel savings into investment. 22. You will always have this because people will always want to change jobs. A) Cyclical unemployment. B) Frictional unemployment. C) Seasonal unemployment. D) Structural unemployment. Show Answer Correct Answer: B) Frictional unemployment. 23. The advantage of a 30 year mortgage over a 15 year mortgage is that you pay less over the life of a loan A) True. B) False. C) Maybe. D) None of above. Show Answer Correct Answer: B) False. 24. The government is concerned that the high inflation rate is threatening the sustainability of recent economic growth. What is the best way for the government to reduce the inflation rate? A) By decreasing government spending and increasing taxes. B) By increasing government spending and decreasing taxes. C) By decreasing both government spending and taxes. D) By increasing both government spending and taxes. Show Answer Correct Answer: A) By decreasing government spending and increasing taxes. 25. Assume that the nominal interest rate is 10 percent. If the expected inflation rate is 3 percent, the real interest rate is A) 7%. B) 0.5%. C) 10%. D) 3%. Show Answer Correct Answer: A) 7%. 26. Study of Microsoft company profit for the year 2020-21 is an example of? A) Microeconomics. B) Macroeconomics. C) Any of the two-microeconomics or macroeconomics. D) None of these. Show Answer Correct Answer: A) Microeconomics. 27. What is a country's use of quotas and tariffs to promote its own industries over foreign competition called? A) Laizzez-faire. B) Economic welfare. C) Promotions. D) Protectionism. Show Answer Correct Answer: D) Protectionism. 28. What does NAIRU stand for? A) Non-accelerating inflation rate of unemployment,. B) Nasty Awesome Incredible Real Unemployment. C) SRPC. D) LRPC. Show Answer Correct Answer: A) Non-accelerating inflation rate of unemployment,. 29. The law of Supply states that the higher the price the lower the quantity supplied, true or false? A) True. B) False. Show Answer Correct Answer: B) False. 30. What type of unemployment is most damaging to an economy? A) Cyclical. B) Seasonal. C) Fricitional. D) Structural. Show Answer Correct Answer: A) Cyclical. ← 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