This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 46 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 46 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following flows is not a Withdrawal? A) Import Payments. B) Export Receipts. C) Taxes. D) Savings. Show Answer Correct Answer: B) Export Receipts. 2. Economists use the term "Land" to refer to all sorts of natural resources. Which of the following resources fit into this category? A) Land. B) Lumber. C) Oil. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 3. Policy that seeks to encourage economic growth or combat inflationary price increases by expanding the money supply, lowering interest rates, increasing gov't. spending or cutting taxes A) Proportional Tax. B) Reserve Requirement. C) Expansionary Policy. D) Budget Deficit. Show Answer Correct Answer: C) Expansionary Policy. 4. Which group of people will suffer from unanticipated inflation? A) Fixed Income. B) Lenders. C) Savers. D) Borrowers. Show Answer Correct Answer: C) Savers. 5. Which area is NOT part of GDP: A) Private Sector. B) Consumer sector. C) Government Sector. D) Business Sector. Show Answer Correct Answer: A) Private Sector. 6. Something that efficiently functions as a medium of exchange, store of value, and unit of account, is considered ..... A) Money. B) Government bonds. Show Answer Correct Answer: A) Money. 7. If the demand for flat screen TV's increase when consumers income rise, then TV's are A) An inferior good. B) A normal good. C) A complement good. D) A substitute good. Show Answer Correct Answer: B) A normal good. 8. Which one of the following people would be classified as being in the labor force in the Eurostat classification? A) A 14-year old who delivers newspapers a few mornings per week. B) An individual serving in the Danish military. C) A 70-year old who is looking for part-time employment. D) A 40-year old who is not currently looking for work and is unable to work because of a recent injury. E) An individual in a prison who does some work in the prison library. Show Answer Correct Answer: C) A 70-year old who is looking for part-time employment. 9. All of the following might happen as a result of unanticipated inflation but ..... A) Lenders who lend at a variable rate will lose potential profit. B) Lenders who loan at a fixed rate will not gain as much profit. C) Value of money will decrease. D) Borrowers using a fixed rate of interest will have to pay less back. Show Answer Correct Answer: A) Lenders who lend at a variable rate will lose potential profit. 10. How many functions does Money need to preform? A) 4. B) 2. C) 3. D) 1. Show Answer Correct Answer: C) 3. 11. The American Red Cross is an example of a(n) ..... corporation. A) C Corporation. B) Nonprofit. C) Hybrid. D) S Corporation. Show Answer Correct Answer: B) Nonprofit. 12. You have the least amount of control over this since it is based on the ups and downs of the business cycle. A) Frictional unemployment. B) Structural unemployment. C) Seasonal unemployment. D) Cyclical unemployment. Show Answer Correct Answer: D) Cyclical unemployment. 13. Productivity is defined as the A) Amount of goods and services produced from each unit of labor unit. B) Number of workers required to produce a given amount of goods and services. C) Amount of labor that can be saved by replacing workers with machines. D) Actual amount of effort workers put into an hour of working time. E) Amount of capital that can be saved by replacing machines with workers. Show Answer Correct Answer: A) Amount of goods and services produced from each unit of labor unit. 14. When computing the opportunity cost of attending a concert you should include: A) The price you pay for the ticket and the value of your time. B) The price you pay for the ticket, but not the value of your time. C) The value of your time, but not the price of the ticket. D) Neither the price of the ticket nor the value of your time. Show Answer Correct Answer: A) The price you pay for the ticket and the value of your time. 15. What are M1 and M2? A) Fiat money. B) Currency. C) Specie. D) Money supplies. Show Answer Correct Answer: D) Money supplies. 16. Ratio of change in total consumption to the change in total income. A) Marginal Propensity to Consume (MPC). B) Average Propensity to Savings (APS). C) Average Propensity to Consume (APC). D) Marginal Propensity to Savings (MPS). Show Answer Correct Answer: A) Marginal Propensity to Consume (MPC). 17. If Net investment in 2013 is $ 200 billion and gross investment in 2013 is $ 238 billion. The depreciation in 2013 is ..... A) 438 billion. B) 38 billion. C) 438 million. D) 38 million. Show Answer Correct Answer: B) 38 billion. 18. If the MPC is.7 and gross investment spending increase by $ 3 billion, GDP will A) Increase by $ 10 billion. B) Increase by $ 4.29 billion. C) Decrease by $ 4.29 billion. D) Increase by 2.1 billion. Show Answer Correct Answer: A) Increase by $ 10 billion. 19. Which of the following is true about the natural rate of unemployment? A) It can vary over time. B) It is 2 percent orless of the civilian laborforce. C) It is equal to the structural unemployment rate. D) It allows for some frictional and cyclical unemployment. Show Answer Correct Answer: A) It can vary over time. 20. The consumer price index is used to? A) Track changes in the stock market. B) Monitor changes in the level of real GDP. C) Monitor changes in the cost of living. D) Track changes in the level of wholesale prices in the economy. Show Answer Correct Answer: C) Monitor changes in the cost of living. 21. A large decline in household income will increase Demand. A) False. B) True. Show Answer Correct Answer: A) False. 22. GDP is the total market value of: A) All expenditures on natural resources, labor, and capital goods in an economy in a given year. B) All expenditures on consumption, investment, and net exports in an economy in a given year. C) All intermediate goods and services produced in an economy in a given year. D) All final goods and services produced within a nation's borders in a given year. Show Answer Correct Answer: D) All final goods and services produced within a nation's borders in a given year. 23. An economy in which production, investment, prices, and incomes are determined centrally by a government. A) Market Economy. B) Mixed Economy. C) Traditional Economy. D) Command Economy. Show Answer Correct Answer: D) Command Economy. 24. When the economy is experiencing an unemployment rate between 3-5%, an economist would say the economy is A) On the cusp of a recession. B) Entering into inflation. C) At full employment. D) At an unnatural rate. Show Answer Correct Answer: C) At full employment. 25. Macroeconomics focuses on the study of economics from the standpoint of ..... A) A typical household. B) Individual economic units. C) A typical firm. D) The entire economy. Show Answer Correct Answer: D) The entire economy. 26. When the price of Nike soccer balls fell, Ronaldo purchased more Nike soccer balls, and fewer Adidas soccer balls. Which of the following best explains Ronaldo's decision to buy more Nike soccer balls? A) The substitution effect. B) The income effect. C) An increase in the demand for Nike soccer balls. D) The price effect. Show Answer Correct Answer: A) The substitution effect. 27. Keynesian economics emphasize a key role in the economy for A) Fiscal Policy (Gov't intervention). B) Free market forces. C) Supply side management. D) Monetary Policy. Show Answer Correct Answer: A) Fiscal Policy (Gov't intervention). 28. Automatic stabilizers can do which of the following? A) Offset the destabilizing influence of changes in tax revenues. B) Aid the economy to move away from the full-employment output level. C) Allow policymakers to formulate a set of rules flexible and comprehensive enough to eliminate discretionary actions. D) Cause tax revenues to decrease when gross domestic product (GDP) decreases and to increase when GDP increases. E) Allow policy makers to prescribe public works programs during inflationary periods because expenditures for unemployment and welfare have correspondingly decreased. Show Answer Correct Answer: D) Cause tax revenues to decrease when gross domestic product (GDP) decreases and to increase when GDP increases. 29. How many types of balance of payment? A) 1. B) 3. C) 2. D) 4. Show Answer Correct Answer: B) 3. 30. Which of the following is contractionary policy? A) Increasing fed fund rate. B) Buying bonds. C) Decreasing required reserves. D) Decreasing discount rate. Show Answer Correct Answer: A) Increasing fed fund 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