This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 22 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A deficit is when government spending is greater than revenue for a span of how long? A) One day. B) One month. C) One year. D) One week. Show Answer Correct Answer: C) One year. 2. Which of the following people would count as unemployed? A) Robin was laid off by the local tv station, but she's had 4 interviews as a news broadcaster for Channel 5 news. B) Ted used to be an architect, but now he teaches at a university. C) Barney works for a big corporation in a big city. D) Marshall just graduated law school and now he's working for a major corporation. Show Answer Correct Answer: A) Robin was laid off by the local tv station, but she's had 4 interviews as a news broadcaster for Channel 5 news. 3. If the real interest rate is 1% and the nominal interest rate is 4%, the expected rate of inflation is A) 4%. B) 1%. C) 3%. D) 2%. E) 0%. Show Answer Correct Answer: C) 3%. 4. A bond tends to pay a high interest rate if it is ....., A) A short-term bond rather than a long-term bond. B) Issued by the federal government rather than a corporation. C) A municipal bond exempt from federal taxation. D) Issued by a corporation of dubious credit quality. Show Answer Correct Answer: D) Issued by a corporation of dubious credit quality. 5. What societal problem did Karl Marx attempt to address in his manifesto? Choose the best answer. A) The exploitation of the poor by the rich. B) The low quality of good produced at large factories. C) The fact that poor people were not allowed to vote. D) Unfair laws that allow poor people to be sent to prison. Show Answer Correct Answer: A) The exploitation of the poor by the rich. 6. Profits from a UK football club, paid back to a wealthy foreign owner, would count as A) Current transfers. B) Import expenditure on the balance of trade of services. C) An outflow investment incomes on the current account. D) A credit as foreign direct investment on the capital/financial account. Show Answer Correct Answer: C) An outflow investment incomes on the current account. 7. Which of the following statements is TRUE according to the Simple Quantity Theory of Money? A) Inflation is only caused by changes in the weather. B) An decrease in the money supply will cause inflation. C) An increase in the quantity of goods purchased will cause inflation. D) An increase in the money supply will cause inflation. Show Answer Correct Answer: D) An increase in the money supply will cause inflation. 8. In the context of SRAS, which factor is considered fixed in the short run? A) Technology. B) Aggregate Demand. C) Exports. D) Imports. Show Answer Correct Answer: A) Technology. 9. Negative supply shock A) SRAS down. B) Shifts SRAS up. C) LRAS right. D) LRAS left. Show Answer Correct Answer: B) Shifts SRAS up. 10. What is represented on the "X" axis on the AD/AS Model? A) Price. B) Real GDP. C) Nominal GDP. D) Price level. Show Answer Correct Answer: B) Real GDP. 11. If the federal government has a budget deficit and enacts contractionary fiscal policy, then A) The demand for loans shifts to the left. B) The demand for loans shifts to the right. C) The supply of loanable funds shifts to the right. D) The supply of loanable funds shifts to the left. Show Answer Correct Answer: A) The demand for loans shifts to the left. 12. Net exports is a measure of A) Exports-imports. B) Exports + imports. C) Imports-exports. D) Imports + exports. Show Answer Correct Answer: A) Exports-imports. 13. In order for a type of money to be used, it must be ..... wherever you want to use it. A) Accepted as Payment. B) Divisible. C) Durable. D) Portable. Show Answer Correct Answer: A) Accepted as Payment. 14. ..... vary depending on a company's production volume (ingredients/transportation, etc) A) Economic utility. B) Fixed costs. C) Variable cost. D) Producer surplus. Show Answer Correct Answer: C) Variable cost. 15. How will it affect the economy if the Federal Reserve increases the Overnight rate (most call it the discount rate)? A) Banks will get mad. B) Nothing will happen. C) It will slow down the economy. D) It will speed up the economy. Show Answer Correct Answer: C) It will slow down the economy. 16. Perfect competition is a ..... market. A) Competitive. B) Complex. C) Comprehensive. D) Conservative. Show Answer Correct Answer: A) Competitive. 17. ..... are interest rates on financial assets that mature a number of years in the future. A) Long-Term Interest Rates. B) Short-Term Interest Rates. C) Mid-Term Interest Rates. D) None of above. Show Answer Correct Answer: A) Long-Term Interest Rates. 18. What are the goals of fiscal policy? A) Promote economic growth, stabilize the economy, achieve full employment, control inflation, and maintain a sustainable fiscal position. B) Promote economic growth, stabilize the economy, achieve full employment, control deflation, and maintain a sustainable fiscal position. C) Decrease government spending, increase taxes, and reduce public debt. D) Increase government spending, reduce taxes, and increase public debt. Show Answer Correct Answer: A) Promote economic growth, stabilize the economy, achieve full employment, control inflation, and maintain a sustainable fiscal position. 19. According to the concept of comparative advantage, which of the following is true when countries specialize and trade? A) Each country obtains an absolute advantage. B) Total world output increases. C) The production possibilities curve for both countries shifts inward. D) Prices fall in both countries. E) Deadweight loss is created. Show Answer Correct Answer: B) Total world output increases. 20. The Nation of Nardrupia has a very high GDP. If that is the case, which of the following concerning life in the country is true? A) People have a great standard of living. B) Everyone in the country is wealthy. C) The country has a market economy. D) A high GDP tells you nothing about life in the country. Show Answer Correct Answer: D) A high GDP tells you nothing about life in the country. 21. A store can be in both the Resource Market and the Product Market. A) True. B) False. Show Answer Correct Answer: A) True. 22. Moderate, Galloping, Hyperinflation and Deflation are ..... A) Types of Inflation. B) Public Policies to increase the economic activities. C) Types of Unemployement indicators. D) Prices Index. Show Answer Correct Answer: A) Types of Inflation. 23. Is a bond issued by the Federal government. A) Interest rate. B) Reserve requirement. C) Bank panic. D) Treasury bills. Show Answer Correct Answer: D) Treasury bills. 24. The rate the Fed charges banks for a loan A) Prime rate. B) Discount rate. C) Federal fund rate. D) Reserve ratio. Show Answer Correct Answer: B) Discount rate. 25. When governments run budget deficits, how do they make up the differences between tax revenue and spending? A) Asking for foreign aid. B) Selling government assets. C) Borrowing money, increasing taxes, or reducing spending in other areas. D) Printing more money . Show Answer Correct Answer: C) Borrowing money, increasing taxes, or reducing spending in other areas. 26. ..... GDP uses constant base-year prices to value the economy's production. A) Nominal. B) Real. Show Answer Correct Answer: B) Real. 27. Which type of economic system bases its decisions on custom? A) Market Economy. B) Mixed Economy. C) Command Economy. D) Traditional Economy. Show Answer Correct Answer: D) Traditional Economy. 28. Tight money policy is used to ..... A) Fight recession. B) Stop inflation. Show Answer Correct Answer: B) Stop inflation. 29. Which of the following indicators is included in Vietnam's GDP? A) EuroAuto company in Vietnam imported BMW cars worth 100, 000 USD. B) Coca-Cola built a factory in Binh Duong. C) The government spends money on natural disaster relief. D) Hoang Anh Gia Lai Group invests in planting rubber trees in Laos. Show Answer Correct Answer: B) Coca-Cola built a factory in Binh Duong. 30. Which is not an effect of Deflation? A) Increased spending on goods and services. B) Reduced profit and cash flow for companies. C) Oversupply of goods and services. D) Lower price for goods and services. Show Answer Correct Answer: A) Increased spending on goods and services. ← 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