This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 30 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 30 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. People and governments have begun to wonder whether GDP should be the main way to measure a country's growth. The main proposal is ..... because determine what it means to be a good society acording to 3 dimensions:basic human needs, foundations of wellbeing and opportunity. A) Government Spending. B) Balance of Payments. C) Importations and Exportations. D) Social Progress Index. Show Answer Correct Answer: D) Social Progress Index. 2. What kind of business is BEST described by these statements?I am the only owner of my business. I take all the risks of doing business. I keep all the profits. A) Corporation. B) Cooperative. C) Proprietorship. D) Partnership. Show Answer Correct Answer: C) Proprietorship. 3. Gross Domestic Product is a method for calculating how much a country produces by adding which four spending categories? A) Consumption, Investment, Government, Net Exports. B) Wages, Rent, Interest, Dividends. C) Consumption, Interest Rates, Government, Net Exports. D) Consumption, Investment, Government, Business Revenues. Show Answer Correct Answer: A) Consumption, Investment, Government, Net Exports. 4. Which of the following statements accurately compares Fiscal Policy and Monetary Policy? A) Monetary policy is always effective, while fiscal policy is effective only sometimes. B) Fiscal policy is designed to shift AD, while monetary policy is designed to shift AS. C) Voters can influence monetary policy, but not fiscal policy. D) Monetary policy can be enacted more quickly than fiscal policy. Show Answer Correct Answer: D) Monetary policy can be enacted more quickly than fiscal policy. 5. What is monetary policy? A) The Federal Reserve's actions to achieve maximum employment. B) Legislation changing levels of taxation and/or government spending to stabilize the economy. C) The interest rate in which depository institutions lend reserve balances to other institutions overnight. D) The accumulation of government deficits over the years. Show Answer Correct Answer: A) The Federal Reserve's actions to achieve maximum employment. 6. In a ..... economy, the government completely controls everything about the economy A) Command. B) Controlled. C) Efficient. D) Invasive. Show Answer Correct Answer: A) Command. 7. Discretionary spending A) Spending for federal programs that must receive approval each year. B) Federal spending required by law that continues each year without the need for congressional approval. C) Purchase or sale of U.S. government bonds and treasury bills. D) The percent of deposits that banks have to have set aside in cash at any given time. Show Answer Correct Answer: A) Spending for federal programs that must receive approval each year. 8. Which of the following events shifts the short-run aggregate supply curve to the right? A) A drop in oil prices. B) A decrease in the money supply. C) An increase in government spending on military equipmentd. D) An increase in price expectations. Show Answer Correct Answer: A) A drop in oil prices. 9. When the Fed lowers interest rates many firms or business will do what? A) Nothing as interest rates do not impact businesses. B) Be able to expand and invest in new resources. C) Be forced to lay off numerous workers. D) There is not enough information to answer the question. Show Answer Correct Answer: B) Be able to expand and invest in new resources. 10. A quantity measured per unit of time period is known as: A) Stock variable. B) Flow variable. C) Inventory. D) None of these. Show Answer Correct Answer: B) Flow variable. 11. Which of the following is known as the father of economics? A) ADAM SMITH. B) DAVID RICARDO. C) DONALD TRUMP. D) BILL CLINTON. Show Answer Correct Answer: A) ADAM SMITH. 12. If the central bank sets the interest rate higher than what will commercial banks be able to lend A) Increased. B) Decrease. C) Does not change. D) All wrong. Show Answer Correct Answer: B) Decrease. 13. The ..... tells us that the time it takes a variable that grows gradually over time to double is approximately 70 divided by that variable's annual growth rate. A) Rule of 70. B) Rule of Increasing Returns. C) Rule of Annual Returns. D) Rule of Variable Growth. Show Answer Correct Answer: A) Rule of 70. 14. Who controls the Federal Reserve? A) The Board of Governors. B) The Chairman. C) The FOMC. D) The President. Show Answer Correct Answer: A) The Board of Governors. 15. What determines the level of real output in the long run? A) Short-term supply shocks. B) Temporary economic changes. C) The current inflation rate. D) The economy being at full capacity. Show Answer Correct Answer: D) The economy being at full capacity. 16. When prices rise for a particular product, consumers will purchase lower-priced similar items ..... A) Income effect. B) Substitute effect. C) Diminishing marginal utility. D) Law of demand. Show Answer Correct Answer: B) Substitute effect. 17. Which of the following is an advantage of sole proprietorship? A) There are almost no requirements to start up a sole proprietorship. B) The owner keeps all the profits. C) The owner makes all the decisions. D) All of the above statements are true. Show Answer Correct Answer: D) All of the above statements are true. 18. An economy that interacts with other economies is known as A) A balanced trade economy. B) An export economy. C) A closed economy. D) An open economy. Show Answer Correct Answer: D) An open economy. 19. What happens to IS curve if government reduces tax rate? A) IS curve shifts to the left. B) IS curve becomes vertical. C) IS curve becomes horizontal. D) IS curve shifts to the right. Show Answer Correct Answer: D) IS curve shifts to the right. 20. What does a Gini Coefficient show? A) The level of inequality in a society. B) The need for Government to increase taxes. C) The amount of unemployment. D) The number of millionaires in a country. Show Answer Correct Answer: A) The level of inequality in a society. 21. The following objective is not one of the macroeconomic objectives: A) Reduce unemployment. B) Reduce social costs of pollution. C) Keep prices low and stable. D) Achieve higher GDP every year. Show Answer Correct Answer: B) Reduce social costs of pollution. 22. Economic term to describe conditions where there are not enough resources to produce what is demanded A) Scarcity. B) Affluence. C) Elasticity. D) Overproduction. Show Answer Correct Answer: A) Scarcity. 23. Gross Domestic Product (GDP) A) The value of all final goods and services produced within a nation in a year. B) National income minus outputs. C) The value of all prices. D) The value of intermediate products. Show Answer Correct Answer: A) The value of all final goods and services produced within a nation in a year. 24. Minimizing increases in the price level over time so that a country's money will retain its purchasing power over time. A) Economic Growth. B) Price Stability. C) Full Employment. D) None of above. Show Answer Correct Answer: B) Price Stability. 25. The percentage of a deposit that a bank must hold on to is called the ..... A) Reserve Requirement. B) Discount Rate. C) Credit. D) None of above. Show Answer Correct Answer: A) Reserve Requirement. 26. What is the most common outcome of a US federal budget? A) Balanced Budget. B) Budget Surplus. C) Budget Deficit. D) None of above. Show Answer Correct Answer: C) Budget Deficit. 27. Using the spending approach, which one of the following economic agents is responsible for the largest component of the gross domestic product of the Euro Area? A) Businesses. B) The rest of the world sector. C) Agents involved with illegal activities. D) Private households and institutions. E) Member countries' governments. Show Answer Correct Answer: D) Private households and institutions. 28. Which of the following will occur if the federal government runs a budget deficit? A) Expenditure multiplier will increase. B) State governments will run a budget surplus to offset the federal deficit. C) Economy's output will decrease. D) Interest rates will tendd to decline. E) Size of the national debt will increase. Show Answer Correct Answer: E) Size of the national debt will increase. 29. What is the Federal Funds Rate? A) The amount of money the government collects in taxes. B) The amount of money the government gives to schools. C) Loan interest Rates. D) The Interest rate in which depository institutions lend reserve balances to other depository institutions overnight. Show Answer Correct Answer: D) The Interest rate in which depository institutions lend reserve balances to other depository institutions overnight. 30. A business with one owner who has total control and liability is ..... A) Corporation. B) Sole proprietorship. C) Monopoly. D) Partnership. Show Answer Correct Answer: B) Sole proprietorship. ← 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