This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 26 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 26 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Someone who is motivated to start a business by the promise of making a profit. A) Consumer. B) Shareholder. C) Banker. D) Entrepreneur. Show Answer Correct Answer: D) Entrepreneur. 2. The consumer price index (CPI) is an indicator of which of the following? A) The velocity of money. B) The presence of a budget deficit or surplus. C) The level of inflation or deflation. D) The size of the economy. Show Answer Correct Answer: C) The level of inflation or deflation. 3. Costs that we made in the past that we cannot recover A) Utility. B) Opportunity Cost. C) Opportunity Set. D) Sunk Cost. Show Answer Correct Answer: D) Sunk Cost. 4. Why do supply-side policies make UK goods more competitive? A) They lead to a rise in output. B) They lead to a fall in prices. C) They encourage higher consumption. D) They discourage monopolies. Show Answer Correct Answer: B) They lead to a fall in prices. 5. Macroeconomics studies the economy from viewpoint of ..... A) The firms. B) The entire economy. C) The government. D) The households. Show Answer Correct Answer: B) The entire economy. 6. It is a macroeconomic model that shows the interactions and interrelationships among the macroeconomic sectors. A) CIRCULAR FLOW OF INCOME and GOODS. B) DIAGRAM OF INCOME and GOODS. C) CIRCULAR FLOW OF SAVINGS. D) None of above. Show Answer Correct Answer: A) CIRCULAR FLOW OF INCOME and GOODS. 7. Opportunity cost A) Quantity of goods or services produced in a given time period, by a firm, industry, or country. B) The most desirable alternative given up as the result of a decision. C) All human-made goods that are used to produce other goods and services; tools and buildings. D) X-Axis. Show Answer Correct Answer: B) The most desirable alternative given up as the result of a decision. 8. In a recession, uncertainty about employment can deter spending. Which of the following is a synonym for "deter?" A) Facilitate. B) Discourage. C) Enable. D) Permit. Show Answer Correct Answer: B) Discourage. 9. When does the short run fluctuation occur? A) There is a change in the IS curve or LM curve or both. B) Only when there is a change in the IS curve. C) Only when there is a change in the LM curve. D) Only when there is a change in both curves. Show Answer Correct Answer: A) There is a change in the IS curve or LM curve or both. 10. Inflation that occurs when a country experiences very high and usually accelerating rates of inflation, rapidly decreasing the real value of the local currency. A) Cost-push inflation. B) Deflation. C) Hyperinflation. D) Creeping Inflation. Show Answer Correct Answer: C) Hyperinflation. 11. What is the difference between a stock and a bond? A) A stock is a share in the ownership of a company held by a shareholder; a bond is a loan in the form of an IOU that pays interest. B) A bond is a share in the ownership of a company held by a shareholder; a stock is a loan in the form of an IOU that pays interest. C) They are the same. D) None of above. Show Answer Correct Answer: A) A stock is a share in the ownership of a company held by a shareholder; a bond is a loan in the form of an IOU that pays interest. 12. An increase in the overall price level is known as A) Inflation. B) Deflation. C) Stagflation. D) Recession. Show Answer Correct Answer: A) Inflation. 13. Which tool of monetary policy matches this definition:Since the Fed is the Lender of Last Resort, when banks can't borrow from one another, they borrow from the Federal Reserve. The interest the Fed charges on loans is this term. A) Reserve Requirement. B) Interest on Required and Excess Reserves. C) Discount Rate. D) Open Market Operations. Show Answer Correct Answer: C) Discount Rate. 14. TRUE or FALSE:Currently about 16 out of every 100 workers in the United States are full-time homemakers. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 15. Choose the Best Answer.When there is a trade surplus, what is the algebraic sign of "net exports" in the expenditure formula of GDP? A) Negative. B) Positive. C) Both Negative and Positive. D) None of the above. Show Answer Correct Answer: B) Positive. 16. Which of the following is concerned with macroeconomics study? A) Inflation. B) Average cost. C) Factor market. D) Individual demand. Show Answer Correct Answer: A) Inflation. 17. Which of the following is the actual definition of transfer payments? A) Compensation to the employees within an Organisation. B) Payments made to workers on transferring from one job to another. C) Payments made without any exchange of goods and services. D) Payments made for production. Show Answer Correct Answer: C) Payments made without any exchange of goods and services. 18. What will generally happen to the aggregate demand curve when consumer confidence decreases? A) Curve slopes up. B) Curve shifts left. C) Curve shifts right. D) No change in curve. Show Answer Correct Answer: B) Curve shifts left. 19. Which of the following is likely the best indicator of economic health? A) Nominal GDP is $ 18 trillion. B) Real GDP grew by 3 percent this year. C) Real GDP is $ 18 trillion. D) Nominal GDP grew by 3 percent this year. Show Answer Correct Answer: B) Real GDP grew by 3 percent this year. 20. The goal of macroeconomics is ..... A) To explain the economic changes that affect a particular household, firm or market. B) To explain the economic changes that affect many households, firms, and market simultaneously. C) To devise policies to deal with market failures, such as monopoly, externalities, common resources and public goods. D) All of above. Show Answer Correct Answer: D) All of above. 21. The table below shows labor market statistics for a nation. Number of Workers Structurally Unemployed 3 millionNumber of Workers Cyclically Unemployed 4 millionNumber of Workers Frictionally Unemployed 2 millionNumber of Workers Officially Classified as Employed 91 millionWorking-age Population. 150 million What is the nation's unemployment rate? A) 5%. B) 66.7%. C) 9%. D) 6%. E) 4%. Show Answer Correct Answer: C) 9%. 22. What is the invisible hand? A) Self-interest motivating the market place. B) Competition being the regulating force in the market place. C) The self-regulating nature of the market place. D) The equal distribution of wealth. Show Answer Correct Answer: C) The self-regulating nature of the market place. 23. Which condition indicates that the United States is in a recession? A) The Dow Jones Industrial Average plummets more than 100 points in a day. B) The Federal Reserve Board raises the discount lending rate by more than 1 percent. C) The US GDP declines for six consecutive months. D) The US trade deficit doubles during one fiscal year. Show Answer Correct Answer: C) The US GDP declines for six consecutive months. 24. Another name for net export is..... A) Net capital inflow. B) Export-import. C) Net capital outflow. D) Trade balance. Show Answer Correct Answer: D) Trade balance. 25. Unemployment caused when a man resigns from his job to start looking for a higher paying job. A) Seasonal. B) Cyclical. C) Frictional. D) Structural. Show Answer Correct Answer: C) Frictional. 26. M2 consists of..... A) Currency. B) Currency + demand deposits, check, dan other checkable deposit. C) Currency + demand deposits, check, dan other checkable deposit + Retail money market mutual fund balance, saving deposit and time deposit. D) Currency + demand deposits, check, dan other checkable deposit + Retail money market mutual fund balance, saving deposit and time deposit + loans. Show Answer Correct Answer: C) Currency + demand deposits, check, dan other checkable deposit + Retail money market mutual fund balance, saving deposit and time deposit. 27. All natural resources that go into the production of a good or service: A) Capital. B) Entrepreneurship. C) Land. D) Labor. Show Answer Correct Answer: C) Land. 28. Microeconomics is the study of how households and firms make decisions and how they interact in markets. A) False. B) True. Show Answer Correct Answer: B) True. 29. If we pay tax and consume goods, but still have money left, we keep the money in the bank as A) Private Saving. B) Public Saving. C) National Saving. D) Investment Saving. Show Answer Correct Answer: A) Private Saving. 30. Both the individual and the state should know exactly how much tax should be paid, when and how A) Equity canon of taxation. B) Convenience canon of taxation. C) Certainty canon of taxation. D) Economy canon of taxation. Show Answer Correct Answer: C) Certainty canon of taxation. ← 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