This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 47 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 47 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A labor force of 20 million people has 18.5 million people employed. Find the unemployment rate. A) 6%. B) 7.5%. C) 10%. D) 8.5%. Show Answer Correct Answer: B) 7.5%. 2. What term refers to a country that has accumulated annual deficits over the years plus any interest accrued on the money borrowed? A) National debt. B) Federal budget surplus. C) Negative balance of payments. D) Federal deficit. Show Answer Correct Answer: A) National debt. 3. What is true about aggregate demand? A) AD = C + I + G + X + M. B) AD = C-I-G-X-M. C) AD = C + I + G + (X-M). D) AD = C + I + G + (X + M). Show Answer Correct Answer: C) AD = C + I + G + (X-M). 4. Which policy would help fight unemployment? A) Expansionary. B) Contractionary. Show Answer Correct Answer: A) Expansionary. 5. Which of the following is a financial asset? A) Gold. B) Share. C) Silver. D) Land. Show Answer Correct Answer: B) Share. 6. If the Fed sells government securites, this ..... the money supply. A) Increases/expands. B) Decreases/contracts. C) Does not affect. D) Is in spite of. Show Answer Correct Answer: A) Increases/expands. 7. An individual has an ..... in producing a good or service if he or she can make more of it with a given amount of time and resources. A) Absolute Advantage. B) Comparative Advantage. C) Productive Efficiency. D) Allocative Efficiency. Show Answer Correct Answer: A) Absolute Advantage. 8. In the circular flow of income, government spending and exports are ..... A) Injections and leakages, respectively. B) Leakage and injections, respectively. C) Components of aggregate supply. D) Injections. Show Answer Correct Answer: D) Injections. 9. If the price of imported Canadian lumber increases A) AS shifts left (decrease). B) AS shifts right (increase). C) AD shifts right (increase). D) AD shifts left (decrease). Show Answer Correct Answer: A) AS shifts left (decrease). 10. To help maintain the health of the economy, ..... uses ..... policy by managing the money supply and interests rates. A) The Federal Reserve, monetary. B) Congress, fiscal. C) The Federal Reserve, fiscal. D) Congress, monetary. Show Answer Correct Answer: A) The Federal Reserve, monetary. 11. What group is in the middle of the Periodic Table? A) Metalloids. B) Post-Metals. C) Noble Gases. D) Transition Metals. Show Answer Correct Answer: D) Transition Metals. 12. Complete the Statement ..... refers to the phenomenon wherein the economic pie is not evenly distributed. A) Income equality. B) Income inequality. C) Income inequity. D) Income equity. Show Answer Correct Answer: B) Income inequality. 13. What is the difference between Final Goods and Services and Intermediate Goods and Services? A) Final goods and services are goods and services sold to the final, or end, user; intermediate goods and services are goods and services bought from one firm by another firm to be used as inputs into the production of final goods and services. B) Intermediate goods and services are goods and services sold to the final, or end, user; Final goods and services are goods and services bought from one firm by another firm to be used as inputs into the production of final goods and services. C) They are the same. D) None of above. Show Answer Correct Answer: A) Final goods and services are goods and services sold to the final, or end, user; intermediate goods and services are goods and services bought from one firm by another firm to be used as inputs into the production of final goods and services. 14. When the Fed increases the supply of money, what does happen to value of money and price level in the interaction of money supply and demand curves? A) Decrease the value of money and decrease the price level. B) Decrease the value of money and increase the price level. C) Increase the value of money and decrease the price level. D) Increase the value of money and increase the price level. Show Answer Correct Answer: B) Decrease the value of money and increase the price level. 15. What do you call the payment the households receive from the firms? A) FACTOR INCOME. B) FACTOR MARKET. C) FACTOR BENEFIT. D) None of above. Show Answer Correct Answer: A) FACTOR INCOME. 16. ..... refers to a system in which foreign exchange rate is determined by market forces and central bank influences the exchange rate through intervention A) Managed floating rate system. B) Fixed exchange rate system. C) Floating exchange rate system. D) Flexible exchange rate system. Show Answer Correct Answer: A) Managed floating rate system. 17. Fiscal contractionary policy (decrease in govt purchases or increase in taxes) under floating exchange rates A) Shifts IS* leftlowers exchange rateraises income. B) Shifts IS* rightraises exchange rateno effect on income. C) Shifts IS* leftlowers exchange rateno effect on income. D) Shifts IS* right lowers exchange rateraises income. Show Answer Correct Answer: C) Shifts IS* leftlowers exchange rateno effect on income. 18. TRUE or FALSE:A motor vehicle manufactured in Europe but sold in the United States would represent an addition to the gross domestic product of the United States. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 19. At which phase in the business cycle is there full employment and prosperity? A) Trough. B) Contraction. C) Expansion. D) Peak. Show Answer Correct Answer: D) Peak. 20. Which type of economy is controlled by the government? A) Command. B) Market. C) Mixed. D) Democratic. Show Answer Correct Answer: A) Command. 21. What type of unemployment is caused by contractions in the business cycle? A) Seasonal. B) Structural. C) Frictional. D) Cyclical. Show Answer Correct Answer: D) Cyclical. 22. What was the item Friedman used as an illustration o how markets both use and encourage voluntary cooperation? A) A transistor radio. B) A calculator. C) A book. D) A pencil. Show Answer Correct Answer: D) A pencil. 23. The more money that a person makes, the more they are willing to spend ..... A) Income effect. B) Diminishing marginal utility. C) Total revenue. D) Substitute effect. Show Answer Correct Answer: A) Income effect. 24. If planned investment exceeds actual investment, A) There will be an accumulation of inventories. B) There will be no change in inventories. C) There will be a decline in inventories. D) None of the above. Show Answer Correct Answer: C) There will be a decline in inventories. 25. GDP underestimates our economic wellbeing because: A) It includes the value of work done by nannies. B) It ignores the distribution of products. C) It includes the value of work done by illegal immigrants. D) It includes the value of work done by householders. Show Answer Correct Answer: B) It ignores the distribution of products. 26. What is NOT one of the three functions of money? A) Unit of Account. B) Store of Value. C) Medium of Exchange. D) Checks and Balances. Show Answer Correct Answer: D) Checks and Balances. 27. Sales tax is a ..... tax A) Regressive. B) Progressive. Show Answer Correct Answer: A) Regressive. 28. Which of the following would cause the value of a nation's GDP to increase in a given year? A) More people choose to stay at home to raise their children rather than using paid childcare. B) Households spend more on domestic air travel. C) An increase in the sale of used cars. D) An increase in sale of illegal goods in the economy. E) An increase in volunteer work. Show Answer Correct Answer: B) Households spend more on domestic air travel. 29. Which of the following best defines unemployment? A) The state of being able to work and actively seeking work, but unable to find employment. B) The state of being able to work, but choosing not to. C) The percentage of the labour force that is able and actively seeking work, but cannot find employment. D) The total number of people who do not work. Show Answer Correct Answer: A) The state of being able to work and actively seeking work, but unable to find employment. 30. This type of fiscal policy reduces aggregate demand. A) Contractionary. B) Expansionary. C) Discretionary. D) None of above. Show Answer Correct Answer: A) Contractionary. ← 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