This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 43 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 43 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The ..... model relates the monetary policy. A) SI. B) ML. C) IS. D) LM. Show Answer Correct Answer: D) LM. 2. Consumer durable goods are those goods that are expected to last longer than ..... A) Three years. B) Five years. C) One year. D) Three months. E) Six months. Show Answer Correct Answer: C) One year. 3. The resources such as labor, material, and machinery that are used to produce goods and services; also called inputs A) Input. B) Expenses. C) Output. D) Factors of Production. Show Answer Correct Answer: D) Factors of Production. 4. Unemployed who are looking for better working conditions, or seeking a higher wage. A) Seasonal. B) Cyclical. C) Frictional. D) Structural. Show Answer Correct Answer: C) Frictional. 5. Which sector has the largest share in polish GDP? A) Agriculture. B) Industry. C) Construction. D) Services. Show Answer Correct Answer: D) Services. 6. Ibn Khaldun's view is that the wealth of a country is determined by the amount of money it has. It is not determined by how much the country's ability to produce goods and services. The statement above is..... A) Salah. B) Correct. Show Answer Correct Answer: A) Salah. 7. What is the difference between a fixed and a floating exchange rate? A) A fixed exchange rate is set by the monetary authority with respect to a foreign currency or a basket of foreign currencies, a floating exchange rate is determined in foreign exchange markets depending on demand and supply, and it generally fluctuates constantly. B) There is no difference between them, both determined by the central bank. C) A fixed exchange rate is better than the floating exchange rate in determining the exchange rate of a particular country's currency. D) All of the answers above. Show Answer Correct Answer: A) A fixed exchange rate is set by the monetary authority with respect to a foreign currency or a basket of foreign currencies, a floating exchange rate is determined in foreign exchange markets depending on demand and supply, and it generally fluctuates constantly. 8. Which of the following individuals is considered officially unemployed? A) Chris, who has not worked for more than three years and has given up looking for work. B) Kim, who is going to school full-time and is waiting until graduation before looking for a job. C) Pat, who recently left a job to look for a different job in another town. D) Leslie, who retired after turning 65 only five months ago. E) Lee, who is working 20 hours per week and is seeking full-time employment. Show Answer Correct Answer: C) Pat, who recently left a job to look for a different job in another town. 9. A ..... supply shock shifts the aggregate supply curve to the left, while a ..... supply shock shifts the aggregate supply curve to the right. A) Positive; positive. B) Positive; negative. C) Negative; positive. D) Negative; negative. Show Answer Correct Answer: C) Negative; positive. 10. The opportunity cost of a choice is the value of the best alternative forgone. A) True. B) Flase. Show Answer Correct Answer: A) True. 11. Suppose a panel of economists is predicting that a nation's real GDP per capita will double in approximately 10 years. Based upon the Rule of 70, what must be the predicted annual growth rate of real GDP per capita? A) 2.85%. B) 14%. C) 5%. D) 7%. E) 140%. Show Answer Correct Answer: D) 7%. 12. The federal government redistributes income primarily by A) Setting up planning commissions to set wage rates. B) Taxing different income levels at different rates. C) Guaranteeing every person a minimum income through minimum-wage laws. D) Providing the same goods and services to all citizens. E) Relocating and retraining structurally unemployed people. Show Answer Correct Answer: B) Taxing different income levels at different rates. 13. The following are macroeconomics objectives, EXCEPT ..... A) Unjust distribution of income. B) Full employment. C) High economic growth. D) Price stability. Show Answer Correct Answer: A) Unjust distribution of income. 14. If countries that imported from the US went into a recession, U.S. net exports would A) Rise, making aggregate demand shift right. B) Rise, making aggregate demand shift left. C) Fall, making aggregate demand shift right. D) Fall, making aggregate demand shift left. Show Answer Correct Answer: D) Fall, making aggregate demand shift left. 15. How do you find the unemployment rate? A) Subtracting the number of unemployed people from the total number of people in the labor force. B) Dividing the total number of people in the labor force by the number of unemployed people. C) Multiplying the number of unemployed people by the total number of people in the labor force. D) Dividing the number of unemployed people by the total number of people in the labor force. Show Answer Correct Answer: D) Dividing the number of unemployed people by the total number of people in the labor force. 16. The process by which the Federal Reserve controls the supply, availability, and cost of money in order to keep the economy stable is ..... A) Fiscal Policy. B) The Discount Rate. C) Monetary Policy. D) The Interest Rate. Show Answer Correct Answer: C) Monetary Policy. 17. Large or persistent inflation is almost always caused by A) Higher than normal levels of productivity. B) Foreign competition. C) Excessive taxation. D) Excessive government spending. E) Excessive growth in the quantity of money. Show Answer Correct Answer: E) Excessive growth in the quantity of money. 18. This is a tax levied on imports or exports. A) Tariffs. B) Exports. C) Imports. D) Entitlements. E) Subsidies. Show Answer Correct Answer: A) Tariffs. 19. Who benefits the most from unexpected inflation A) Borrowers, if they have a fixed rate loan. B) Lenders/Creditors, if they gave out fixed rate loans. C) Consumers, who are purchasing things later in their life. D) All of the above. Show Answer Correct Answer: A) Borrowers, if they have a fixed rate loan. 20. The concept of automatic stabilisers suggest that A) Monetary policy will automatically balance the budget. B) The use of discretionary fiscal policy will stabilise the economy. C) The budget must always be in surplus to ensure sustainable economic growth. D) It is better for governments to run budget deficits in a recession, as the extra government spending will reduce the decline in private consumption. Show Answer Correct Answer: D) It is better for governments to run budget deficits in a recession, as the extra government spending will reduce the decline in private consumption. 21. Real exchange rate is the rate at which a person can trade the goods and services of one country for the goods and services of another. A) False. B) True. Show Answer Correct Answer: B) True. 22. Savers, creditors (lenders), and people on a fixed income are ..... likely to be hurt by inflation. A) Least. B) Most. Show Answer Correct Answer: B) Most. 23. Cost push inflation is primarily caused by: A) A surge in consumer demand. B) Decreased taxation. C) An increase in production costs. D) Increased government spending. Show Answer Correct Answer: C) An increase in production costs. 24. Name a group that was not badly effected by hyperinflation. A) Pensioners. B) Landowners. C) The poor. D) Factory workers. Show Answer Correct Answer: B) Landowners. 25. Which of these can shift the demand curve? A) Change in Input. B) Change number of competitors. C) Change in Income. D) Change in Technology. Show Answer Correct Answer: C) Change in Income. 26. Which of the following is not counted in a country's GDP? A) Goods exported to other countries. B) Changes in inventories. C) Domestically produced capital goods. D) Financial assets, such as stocks and bonds. E) Newly produced services. Show Answer Correct Answer: D) Financial assets, such as stocks and bonds. 27. Cash that can be loaned out by the banks. A) Excess reserves. B) Crowding out effect. C) Required reserves. D) Fiscal policy. Show Answer Correct Answer: A) Excess reserves. 28. Aggregate Demand curve shows ..... A) The total goods where the individual is willing and able to buy at a certain price, ceteris paribus. B) The real output where an individual is willing and able to buy, ceteris paribus. C) The total goods, where the individual are able for sale, ceteris paribus. D) The real output of where the individual is willing and able to buy at different price level, ceteris paribus. Show Answer Correct Answer: D) The real output of where the individual is willing and able to buy at different price level, ceteris paribus. 29. Which of the following formulas is used to compute for GDP using the income method? A) AG+IN+SE. B) PI+CI+GI+IBT-S+D. C) C+I+G+X-M. D) PI+CI+GI+NFIA-S+D. Show Answer Correct Answer: B) PI+CI+GI+IBT-S+D. 30. Measures the cost of the market basket of a typical urban American family A) Aggregate Supply. B) Budget. C) GDP. D) CPI. Show Answer Correct Answer: D) CPI. ← 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