This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 42 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 42 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Net EXPORT is X-M. What is M? A) IMPORT. B) EXPORT. Show Answer Correct Answer: A) IMPORT. 2. Progressive tax is one in which A) Lower income pays more. B) People of all incomes pay the same. C) Higher income pays a higher percentage. D) No tax. Show Answer Correct Answer: C) Higher income pays a higher percentage. 3. What usually determines what is produced in a market economy? A) What people need and want. B) What government leaders decide should be produced. Show Answer Correct Answer: A) What people need and want. 4. Under a fixed system, the exchange rate: A) Is changed at regular intervals by the central bank. B) Is maintained at a predetermined level by the central bank. C) Fluctuates in response to changing economic conditions. D) Fluctuates in response to changes in the price of gold. Show Answer Correct Answer: B) Is maintained at a predetermined level by the central bank. 5. Entrepreneurs are ..... A) People with all their efforts and abilities. B) Individuals who start a new business or bring a product to market. C) The "gifts of nature" or natural resources not created by human effort. D) The tools, equipment, and factories used in production of goods and services. Show Answer Correct Answer: B) Individuals who start a new business or bring a product to market. 6. What would be the effect of an increase in imports? A) An increased level of SRAS. B) An increased level of AD. C) A decreased level of AD. D) A decreased level of SRAS. Show Answer Correct Answer: C) A decreased level of AD. 7. If Australia has a current account deficit, then: A) We must buy more assets overseas. B) The capital account will also be in deficit. C) We must sell more exports to pay for it. D) We will have a capital account surplus of the same amount. Show Answer Correct Answer: D) We will have a capital account surplus of the same amount. 8. Which one of the following government policies is most likely to reduce structural unemployment? A) Lowering taxes. B) Increasing the mobility of labour. C) Reducing interest rates. D) Lowering unemployment benefits. Show Answer Correct Answer: B) Increasing the mobility of labour. 9. GDP is an important economic measurement because it A) Provides valuable data on unemployment rates. B) Provides valuable data on inflation rates. C) Measures the value of final goods and services produced by a country. D) Measures only the exports of a country. Show Answer Correct Answer: C) Measures the value of final goods and services produced by a country. 10. The exchange of goods and services without using money is known as ..... A) Bartering. B) Fiat money. C) Near money. D) Double coincidence of wants. Show Answer Correct Answer: A) Bartering. 11. Which of the following would not be counted in GDP? A) A widget produced in Tennessee by a U.S. company. B) A widget produced in Missouri by a Canadian company. C) A widget produced in Arkansas by a Chinese company. D) A widget produced in Germany by a U.S. company. Show Answer Correct Answer: D) A widget produced in Germany by a U.S. company. 12. John Keynes argued that if the economy was "stuck" in a recession, that ..... should actively "prime the pump" or steer the economy in the short-run A) Business investment. B) Government. C) Federal reserve. D) International trade. Show Answer Correct Answer: B) Government. 13. Which economic measure is the total value of all goods and services produced within a country's borders adjusted for inflation? A) Real CPI. B) Real GDP. C) GDP per capita. D) CPI. Show Answer Correct Answer: B) Real GDP. 14. One effect of a government-imposed seat belt law has been: A) An increase in the number of accidents. B) Safer driving. C) That everyone now wears seat belts. D) Fewer pedestrian deaths. Show Answer Correct Answer: A) An increase in the number of accidents. 15. How is unemployment rate calculated? A) By dividing the number of unemployed people by the number of people in the labor force and multiplying by 100. B) By calculating the percentage of people in the labor force who are unemployed. C) By measuring changes in the value of a basket of goods and services purchased by the average urban consumer. D) By calculating the total value of goods produced and services provided in a country during one year. Show Answer Correct Answer: A) By dividing the number of unemployed people by the number of people in the labor force and multiplying by 100. 16. Policies that promote rules, restrictions, and mandates A) Regulatory Policies. B) Fiscal Policy. C) International Trade Policies. D) Monetary Policies. Show Answer Correct Answer: A) Regulatory Policies. 17. Accumulating money to use later is which role of money? A) Unit of account/standard of value. B) Store of value. C) Medium of exchange. D) None of above. Show Answer Correct Answer: B) Store of value. 18. The table above gives population and labor-market data for an economy. The unemployment rate in this economy is A) 10%. B) 5%. C) 3.3%. D) 33.3%. E) 50%. Show Answer Correct Answer: A) 10%. 19. Economic efficiency in a market occurs when A) Consumer surplus is equal to producer surplus. B) Consumer surplus is greater than producer surplus. C) Equity is maximised. D) Total surplus is at a maximum. Show Answer Correct Answer: D) Total surplus is at a maximum. 20. Which type of unemployment is caused by a decline in the business cycle? A) Cyclical. B) Structural. C) Seasonal. D) Full. E) Frictional. Show Answer Correct Answer: A) Cyclical. 21. Which of the following is a disadvantage of franchise? A) Assistance from a parent company. B) Must follow parent company business structure. C) Name recognition. D) Shared advertising expenses. Show Answer Correct Answer: B) Must follow parent company business structure. 22. Which of the following best describes "government payments to encourage or protect a certain type of economic activity" ? A) Depression. B) Externality. C) Subsidy. D) Inflation. Show Answer Correct Answer: C) Subsidy. 23. What is the price for labor A) Wages. B) Human capital. C) Labor productivity. D) Value. Show Answer Correct Answer: A) Wages. 24. The population of Ectenia is 100 people:40 work full-time, 20 work half-time but would prefer to work full-time, 10 are looking for a job, 10 would like to work but are so discouraged that they have given up looking, 10 are not interested in working because they are full-time students, and 10 are retired. What is the number of unemployed? A) 10. B) 30. C) 40. D) 20. Show Answer Correct Answer: A) 10. 25. Macroeconomics study the..... A) Demand and supply of the individual economic. B) Aggregate demand of the entire economic. C) Aggregate demand and aggregate supply of the entire economic. D) Aggregate supply of the entire economic. Show Answer Correct Answer: C) Aggregate demand and aggregate supply of the entire economic. 26. The purpose of monetary policy is to maintain the overall price level and to achieve higher economic growth. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 27. Real exchange rate = A) Relative price of foreign goods in terms of domestic goods. B) Relative price of domestic goods in terms of foreign goods. Show Answer Correct Answer: B) Relative price of domestic goods in terms of foreign goods. 28. Web-based advertising has drawn advertisers away from newspaper ads, what type of unemployment? A) Frictional. B) Cyclical. C) Seasonal. D) Structural. Show Answer Correct Answer: D) Structural. 29. Which of the following is most likely to cause a leftward shift in the long-run aggregate supply curve? A) A decrease in the wage rate. B) A decrease in short-run aggregate supply. C) Contractionary fiscal policy. D) A permanent decrease in the size of the labor force. E) A long-term decrease in demand. Show Answer Correct Answer: D) A permanent decrease in the size of the labor force. 30. How can a budget deficit negatively impact the US? A) It would increase US Real GDP. B) It would increase US GDP. C) It would increase economic growth. D) It would increase US federal debt. Show Answer Correct Answer: D) It would increase US federal debt. ← 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