This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 27 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 27 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not included in GDP? A) Illegal transactions. B) Intermediate goods. C) Non-production transactions. D) Use goods. Show Answer Correct Answer: B) Intermediate goods. 2. The leader of the union known as the American Federation of Labor (AFL) A) John P. Morgan. B) Henry Bessemer. C) Samuel Gompers. D) Terrence Powderly. Show Answer Correct Answer: C) Samuel Gompers. 3. TRUE or FALSE: "Discouraged" workers are a subset of those workers classified as not in the labor force by Eurostat. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 4. Increasing government spending to stimulate the economy is called: A) Loose monetary policy. B) Loose fiscal policy. C) Tight monetary policy. D) Tight fiscal policy. Show Answer Correct Answer: B) Loose fiscal policy. 5. The Phillips curve indicates that when the labor market is ....., production costs will ..... and the aggregate supply curve shifts out. A) Easy; rise. B) Easy; fall. C) Tight; fall. D) Tight; rise. Show Answer Correct Answer: B) Easy; fall. 6. Which type of GDP accounts for inflation? A) Real GDP. B) Nominal GDP. Show Answer Correct Answer: A) Real GDP. 7. An increase in short-run aggregate supply could be caused by: A) An increase in wage rates. B) An increase in productivity. C) An adverse supply shock. D) All of the above. Show Answer Correct Answer: B) An increase in productivity. 8. To help the economy grow, the government will decrease or lower taxes. This allows people to have more money and buy more goods and services A) Monetary. B) Fiscal. Show Answer Correct Answer: B) Fiscal. 9. Economy A has the following macroeconomic data for the current year Economic Growth 2.3%Unemployment Rate 5.3%Inflation Rate 1.8% State the current position on an AD/AS Model A) Inflationary Gap. B) Full Employment. C) Deflationary Gap. D) None of above. Show Answer Correct Answer: C) Deflationary Gap. 10. During a contraction what would you do to stimulate the economy? A) Raise the base rate. B) Lower the base rate. Show Answer Correct Answer: B) Lower the base rate. 11. Who coined the word 'Macro'? A) Karl Marx. B) Adam Smith. C) J M Keynes. D) Ragnar Frisch. Show Answer Correct Answer: D) Ragnar Frisch. 12. Which would be an example of structural unemployment? A) Being unemployed due to a lack of skills. B) Being laid off due to a downturn in the business cycle. C) Quitting your job in a fit of rage. D) Taking time off to care for a sick loved one. Show Answer Correct Answer: A) Being unemployed due to a lack of skills. 13. In October, Bill is laid off from his job as a Halloween costume maker solely because of a slow Halloween season. Which statement is true? A) Bill in naturally unemployed. B) Bill is cyclically unemployed. C) Bill is frictionally unemployed. D) Bill is structurally unemployed. Show Answer Correct Answer: B) Bill is cyclically unemployed. 14. In the gross domestic product, the largest dollar amount is A) Consumer spending. B) Rental payments. C) Net exports of goods and services. D) Government purchases of goods and services. Show Answer Correct Answer: A) Consumer spending. 15. During a recession, what must happen to interest rates to spur economic growth? A) Increase. B) Decrease. Show Answer Correct Answer: B) Decrease. 16. The rates of pay for specific jobs or work performed. Wage rates are determined by supply and demand A) Wages. B) Derived Demand. C) Wage Rate. D) Human Capital. Show Answer Correct Answer: C) Wage Rate. 17. An increase in stock market profits in Europe will cause the dollar to ..... and the euro, the currency of the European Union, to ..... A) Depreciate, appreciate. B) Depreciate, depreciate. C) Appreciate, depreciate. D) Appreciate, appreciate. Show Answer Correct Answer: C) Appreciate, depreciate. 18. Fiscal policy attempts to achieve all of the following objectives except ..... A) Stable money supply. B) Price level stability. C) Full employment. D) Economic growth. Show Answer Correct Answer: A) Stable money supply. 19. The role of the government in a capitalist economic system. A) Protect property rights. B) Protect freedom of speech. C) Trick question. The government is never involved in a capitalist system. D) Protect natural rights. Show Answer Correct Answer: A) Protect property rights. 20. Which of the following is the formula to calculate GDP, based on the expenditure approach? A) GDP = C + I + G + (X + M). B) GDP = C + I + G + (X-M). C) GDP = C + I + G-(M-X). D) GDP = C + I + G + M-X. Show Answer Correct Answer: B) GDP = C + I + G + (X-M). 21. These are taxes that don't depend on the taxpayer's income. A) Lump-Sum Taxes. B) Progressive Income Tax. C) Static Tax. D) None of above. Show Answer Correct Answer: A) Lump-Sum Taxes. 22. A market basket is generally used to A) Put things in while you walk around the store. B) Determine the total amount of real gross domestic product. C) Compare prices of goods between years to calculate the consumer price index. D) Advertise new products for companies. Show Answer Correct Answer: C) Compare prices of goods between years to calculate the consumer price index. 23. A two-sector economy in the circular flow diagram is represented by ..... A) Households and the government. B) Firms and the government. C) Households and firms. D) Banks and firms. Show Answer Correct Answer: C) Households and firms. 24. How does scarcity of resources affect the nations of the world? A) It decreases the need for nations to develop technology. B) It causes nations to develop tax laws. C) It causes nations to trade with one another. D) It decreases the need for nations to work together peacefully. Show Answer Correct Answer: C) It causes nations to trade with one another. 25. Programs to help the needy so long as they meeting eligibility standards A) Deductions. B) Appropriations. C) Surplus. D) Entitlements. Show Answer Correct Answer: D) Entitlements. 26. MPL(marginal Production of Labor)=? A) $\frac{L}{Y}$. B) $\frac{\Delta L}{\Delta Y}$. C) $\frac{Y}{L}$. D) $\frac{\Delta Y}{\Delta L}$. Show Answer Correct Answer: D) $\frac{\Delta Y}{\Delta L}$. 27. Economists say that long-run economic growth is almost entirely due to: A) Rising productivity. B) Population growth. C) A democratically elected government. D) A balanced budget. E) Perfectly competitive markets. Show Answer Correct Answer: A) Rising productivity. 28. Which of these is not a physical trait of money A) Uniform. B) Simple. C) Portable. D) Divisible. Show Answer Correct Answer: B) Simple. 29. ..... occurs when people are in between jobs, entering and reentering the labour force. A) Frictional unemployment. B) Seasonal unemployment. C) Cyclical unemployment. D) Technological unemployment. Show Answer Correct Answer: A) Frictional unemployment. 30. Wages are governed by supply and demand A) True. B) False. Show Answer Correct Answer: A) True. ← 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