This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 32 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 32 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What type of economy is North Korea? A) Command. B) Mixed. C) Market. D) None of above. Show Answer Correct Answer: A) Command. 2. Which monetary policy decision is meant to increase the U.S. money supply? A) The Federal Reserve borrows money from a foreign bank to cover a budget deficit. B) The Federal Reserve buys treasury bonds in the open market. C) Congress passes a bill to reduce regulations on business monopolies. D) Congress passes a bill to reduce personal income taxes. Show Answer Correct Answer: B) The Federal Reserve buys treasury bonds in the open market. 3. Aggregate supply = Consumption A) Supply. B) Investment. C) Saving. D) None of above. Show Answer Correct Answer: C) Saving. 4. The difference between gross national product at market price and gross national product at factor cost is ..... A) Exports and imports. B) Net factor income from abroad. C) Subsidies and indirect taxes. D) Depreciation. Show Answer Correct Answer: C) Subsidies and indirect taxes. 5. What is a main goal of the Federal Reserve in its monetary policy? A) Regulation of the stock market. B) Lowering taxes. C) Increasing government spending. D) To curb recessions. Show Answer Correct Answer: D) To curb recessions. 6. The tools of fiscal policy are government expenditure is and taxation. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 7. Which is the primary reason why people and nations trade? A) They have no other choice. B) They want to be independent. C) They benefit from it. D) All of the above. Show Answer Correct Answer: C) They benefit from it. 8. The intersection of the IS and LM curves shows the ..... and the ..... at which both the goods market and the money market are in equilibrium. A) Price level; exchange rate. B) Interest rate; price level. C) Level of output; exchange rate. D) Level of output; price level. Show Answer Correct Answer: C) Level of output; exchange rate. 9. Financial papers with short term maturities (less than a year) and the central Bank siphons and borrows money from the economy when it sells securities. A) Fiscal policy. B) Government securities. C) Rediscounting. D) Open market operation. Show Answer Correct Answer: B) Government securities. 10. A potential trade-off of a new tax on carbon pollution would be: A) An increase in the target cash rate (interest rates) by the Reserve Bank of Australia. B) An increase in resources being allocated to industries that use fossil fuels. C) An increase in the price of electricity produced by coal-fired power stations. D) A decrease in tax collections. Show Answer Correct Answer: C) An increase in the price of electricity produced by coal-fired power stations. 11. A deficit budget occurs when A) The public debt deceases. B) Tax collection is more than government expenditure. C) The government's total expenditure equals revenue. D) The government's total expenditure exceeds revenue. Show Answer Correct Answer: D) The government's total expenditure exceeds revenue. 12. Supply is from the point of view of the ..... A) Individual. B) Producer. C) Consumer. D) Politician. Show Answer Correct Answer: B) Producer. 13. Give the event that the government conducts expansionary fiscal policy. What would happen with the real interest rate and total output? A) The real interest rate increases and total output decreases. B) Both are increases. C) Both are decreases. D) The real interest rate decreases and total output stays unchanged. Show Answer Correct Answer: B) Both are increases. 14. What kind of table lists the quantity of a good that the individual consumer will buy at different prices. A) Demand schedule. B) Demand curve. C) Market demand schedule. D) Market demand curve. Show Answer Correct Answer: A) Demand schedule. 15. Which of the following relates to macroeconomics studies? A) The demand and supply for sugar. B) The types of profit earned by business firms. C) The impact of the depreciation in exchange rate. D) The effect of subsidies to the level of production. Show Answer Correct Answer: C) The impact of the depreciation in exchange rate. 16. A government wishing to reduce the level of unemployment through the use of fiscal policy would be most likely to A) Lower interest rates. B) Increase the money supply. C) Encourage a depreciation of the exchange rate. D) Decrease the size of the budget surplus. Show Answer Correct Answer: D) Decrease the size of the budget surplus. 17. Takes a smaller share of one's income as the amount of income grows is A) Regressive Taxes. B) Progressive Taxes. C) Revenue. D) Evasion. Show Answer Correct Answer: A) Regressive Taxes. 18. In a budget ....., revenues are higher than expenses. A) Balanced. B) Deficit. C) Surplus. D) None of above. Show Answer Correct Answer: C) Surplus. 19. The most important measure of economic growth is ..... A) GDP. B) DDP. C) GNP. D) GNC. Show Answer Correct Answer: A) GDP. 20. Which of the following is a monetary policy action used to combat a recession? A) Cutting taxes. B) Decreasing the money supply. C) Increasing the money supply. D) None of above. Show Answer Correct Answer: C) Increasing the money supply. 21. On a micro graph, which of the following might cause demand to increase? A) A decrease in the price of a complementary good. B) Increase in sales and income taxes on consumers. C) A decline in the popularity of a product. D) A random increase in the price of the product. Show Answer Correct Answer: A) A decrease in the price of a complementary good. 22. TRUE or FALSE:In the Classical model of the labor market there is no involuntary unemployment at the equilibrium wage. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 23. Government development expenditure consists of ..... A) Pensions and gratuities. B) Debt service charges. C) Social services. D) Subsidies. Show Answer Correct Answer: C) Social services. 24. What is the earth's thickest LAYER?Hint. Made of iron, magnesium and silicon A) Outer core. B) Lithosphere. C) Crust. D) Mantle. Show Answer Correct Answer: D) Mantle. 25. TRUE or FALSE:The ability of the atmosphere to dissipate the sulfur dioxide emissions from a coal power plant is an example of the sink function. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 26. What is the number of people who work part time because they cannot find full time jobs? A) Discouraged Workers. B) Underemployment. C) Unemployment. D) Employment. Show Answer Correct Answer: B) Underemployment. 27. Which of the following activities is not included in the calculation of the national income of a country? A) A dispensary rendering medical services. B) A housewife performing housework chores. C) A lawyer conducting their law practice. D) A maid working for a family on a full-time basis. Show Answer Correct Answer: B) A housewife performing housework chores. 28. Suppose the population of 15 years old and above is 175 million people, the number of people unemployed is 20 million and the number of people employed is 130 million. Calculate the labour force participation rate A) 15.4%. B) 85.7%. C) 13.3%. D) 86.7%. Show Answer Correct Answer: B) 85.7%. 29. If the weather in Iowa is particularly hot and dry this summer and researched is published saying corn is really good for you, what will happen to the market for corn? A) Eq Q increases, but we don't know what happens to Eq P. B) Eq Q decreases, but we don't know what happens to Eq P. C) Eq P increases, but we don't know what happens to Eq Q. D) Eq P decreases, but we don't know what happens to Eq Q. Show Answer Correct Answer: C) Eq P increases, but we don't know what happens to Eq Q. 30. The market interest rate that is paid by borrowers to lenders A) Effective rate. B) Real interest rate. C) Interest rate. D) Nominal interest rate. Show Answer Correct Answer: D) Nominal interest rate. ← 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