This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 49 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 49 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. It is the decrease in the general level of prices of basic commodities. A) Deflation. B) Stagflation. C) Inflation. D) Stagnation. Show Answer Correct Answer: A) Deflation. 2. The three main factors of production are: A) School, work, and retirement. B) Land, labor, and capital. C) Economy, specialization, and trade. D) Goods, services, and people. Show Answer Correct Answer: B) Land, labor, and capital. 3. The problem of how to produce means ..... A) Selection of goods to be produced. B) Selection of category of people who use the goods. C) Selection of method of production. D) None of above. Show Answer Correct Answer: C) Selection of method of production. 4. What are the two types of wealth according to Dusenberry? A) Physical and social. B) Measured and non-measured. C) Human and non-human. D) None of these. Show Answer Correct Answer: C) Human and non-human. 5. A Decline In The Value Of Money Called? A) Interest Rates. B) Inflation. C) Deflation. D) Aggregate Expenditure. Show Answer Correct Answer: B) Inflation. 6. Who owns the factors of production in a free market, or capitalist, economy? A) Oligarchs. B) Classes. C) Government. D) Individuals. Show Answer Correct Answer: D) Individuals. 7. Gross Domestic Product measures the A) Quantity of the goods and services produced in a given year, listed item by item, within a country. B) Market value of the final goods and services produced in a given year within a country. C) Measures the market value of the domestic labor in a given year within a country. D) Market value of the final goods and services consumed by households in a given year within a country. Show Answer Correct Answer: B) Market value of the final goods and services produced in a given year within a country. 8. Using 2010 as the base year, the gross domestic product deflator in 2011 was 97. Which of the followingmust be true? A) The purchasing power of a dollar decreased by 3 percent. B) The inflation rate in 2011 was zero. C) The inflation rate in 2011 was positive. D) The real output increased by 3 percent. E) The inflation rate in 2011 was negative. Show Answer Correct Answer: E) The inflation rate in 2011 was negative. 9. What is an example of a pair of goods that are substitutes, and an example of a pair of goods that are complements? A) Khakis and Jeans; Cars and Gasoline. B) Cars and Gasoline; Khakis and Jeans. C) Cookies and Milk; Muffins and Donuts. D) None of above. Show Answer Correct Answer: A) Khakis and Jeans; Cars and Gasoline. 10. An increase in the value of a currency as measured by the amount of foreign currency that can be purchased is called..... A) Nominal exchange rate. B) Real exchange rate. C) Depreciation. D) Appreciation. Show Answer Correct Answer: D) Appreciation. 11. Choose which equation is correct about money supply? A) M2 or Current money = M1+ REPOs. B) M2 or Current money = M1 + Fixed deposits in other banking institution. C) M2 or Current money = M1 +Quasi Money/ Near money. D) M2 or Current money = Paper currency +Quasi Money/ Near money. Show Answer Correct Answer: C) M2 or Current money = M1 +Quasi Money/ Near money. 12. Which of the following MOST helps to distinguish the national debt from federal deficits? A) The debt grows as the deficit shrinks over time. B) Deficits grow when the government fails to repaythe debt. C) The debt grows as funds are borrowed to make up for deficits. D) Deficits grow mainly as a result of spending to service the debt. Show Answer Correct Answer: C) The debt grows as funds are borrowed to make up for deficits. 13. What is national debt? A) The accumulation of government deficits over the years. B) The total debt of all individuals in the country. C) The debt owed by foreign countries to the United States. D) The debt owed by the United States to foreign countries. Show Answer Correct Answer: A) The accumulation of government deficits over the years. 14. A good in which quantity demanded rises as income rises, and in which quantity falls as income falls ex:Jewelry, Essentials Hoodies, DopeBoy Intramural Clothing Line Lobster, The Finer Things A) Inferior good. B) Substitute good. C) Complement good. D) Normal good. Show Answer Correct Answer: D) Normal good. 15. If the government takes an expansionary fiscal policy, where it kickstarts the economy to fight off recession, they might ..... A) Eliminate taxation and spending. B) Increase spending and taxation. C) Increase taxation and decrease spending. D) Increase spending and decrease taxation. Show Answer Correct Answer: D) Increase spending and decrease taxation. 16. Which type of goods are used to help produce other goods? R A) Consumer goods. B) Labor force. C) Capital goods. D) Entrepreneurship goods. Show Answer Correct Answer: C) Capital goods. 17. Real GDP growth always increases real GDP per capita. A) Lie. B) True. Show Answer Correct Answer: A) Lie. 18. Labor productivity is measured as: A) Dollar value of output per unit of labor. B) Output per labor-hour. C) Dollar value of inputs per unit of output. D) Hourly wage rate divided by output per labor-hour. Show Answer Correct Answer: B) Output per labor-hour. 19. If the required reserve ratio is 0.20 and the Federal Reserve buys $ 200 worth of securities, the maximum increase in the money supply will be A) $ 800. B) $ 400. C) $ 600. D) $ 200. E) $ 1000 . Show Answer Correct Answer: E) $ 1000 . 20. If the federal government has a budget deficit and enacts expansionary fiscal policy, then A) The demand for loans shifts to the left. B) The demand for loans shifts to the right. C) The supply of loanable funds shifts to the right. D) The supply of loanable funds shifts to the left. Show Answer Correct Answer: B) The demand for loans shifts to the right. 21. What factors affect aggregate supply? A) Changes in labor force, changes in technology, changes in capital stock, changes in government regulations, and changes in productivity. B) Changes in population, changes in income levels, changes in consumer preferences, changes in business expectations. C) Changes in consumer spending, changes in government spending, changes in taxes, changes in imports and exports. D) Changes in demand, changes in interest rates, changes in inflation, changes in exchange rates. Show Answer Correct Answer: A) Changes in labor force, changes in technology, changes in capital stock, changes in government regulations, and changes in productivity. 22. Which of the following is an effect of deflation? A) Decrease in unemployment. B) Reduction in production. C) Increase in production. D) Increased spending on goods and services. Show Answer Correct Answer: B) Reduction in production. 23. How would strike positively affect workers? A) It would "force" employers to accept a "reasonable" proposition by employees. B) It would allow them to get back their old position without a decrease in a positive employee and employer relationship bond. C) Both parties lose money because of delayed service and loss of production time. D) None of above. Show Answer Correct Answer: A) It would "force" employers to accept a "reasonable" proposition by employees. 24. The study of a single factor of an economy-such as individuals, households, businesses, rather than the economy as a whole. A) Scarcity. B) Microeconomics. C) Macroeconomics. D) None of above. Show Answer Correct Answer: B) Microeconomics. 25. A general increase in prices is called A) A price index. B) The CPI. C) Purchasing power. D) Inflation. Show Answer Correct Answer: D) Inflation. 26. Most government spending is geared towards what? A) Education. B) Energy. C) Social Security. D) Defense. Show Answer Correct Answer: C) Social Security. 27. The weight of a dinar is equivalent to gold..... grams. A) 4, 05. B) 4, 25. C) 4, 15. D) 4, 35. Show Answer Correct Answer: B) 4, 25. 28. Which of the following best describes how an increase in the money supply shifts the aggregate demand curve? A) The money supply curve shifts right, the interest rate rises, investment increases, and the aggregate demand curve shifts right. B) The money supply curve shifts right, the interest rate rises, investment decreases, and the aggregate demand curve shifts left. C) The money supply curve shifts right, the interest rate falls, investment increases, and the aggregate demand curve shifts right. D) The money supply curve shifts right, prices rise, spending falls, and the aggregate demand curve shifts left. Show Answer Correct Answer: C) The money supply curve shifts right, the interest rate falls, investment increases, and the aggregate demand curve shifts right. 29. Equilibrium quantity A) Specialization in production state in which opposing forces or influences are balanced. B) A state in which opposing forces or influences are balanced. C) The quantity at which quantity demanded and quantity supplied are equal for a certain price level. D) The price at which the amount producers are willing to supply is equal to the amount consumers are willing to buy. Show Answer Correct Answer: A) Specialization in production state in which opposing forces or influences are balanced. 30. If the demand for used cars decreases after the price of a new car falls, used cars and new cars are A) Inferior goods. B) Substitute goods. C) Normal goods. D) Complementary goods. Show Answer Correct Answer: B) Substitute goods. ← 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