This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 50 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 50 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... goods are excluded from the calculation of GDP because their value will be included in the final product. A) Secondhand. B) Nonmarket. C) Intermediate. D) Underground economy. Show Answer Correct Answer: C) Intermediate. 2. Unemployment is at an all time high and consumer spending is at its lowest. Which phase of the business cycle is this? A) Recession. B) Expansion. C) Peak. D) Contraction. Show Answer Correct Answer: A) Recession. 3. What are the main causes of unemployment? A) Global warming, political instability, and natural disasters. B) Low birth rate, aging population, and lack of government support. C) Increased automation, lack of job opportunities, and overpopulation. D) Economic recession, technological advancements, lack of skills or education, outsourcing of jobs, and changes in the labor market. Show Answer Correct Answer: D) Economic recession, technological advancements, lack of skills or education, outsourcing of jobs, and changes in the labor market. 4. Loans extended for longer periods of time often involve higher interest rates in order to A) Encourage consumers to buy durable goods for extended periods of time. B) Encourage lenders to not engage in risky loans. C) Compensate the lender for greater risk. D) Compensate the buyer for using savings to make a purchase. Show Answer Correct Answer: C) Compensate the lender for greater risk. 5. The components of a Balance of Payment account are ..... A) Capital Account. B) Current Account. C) Both Capital and Current. D) Financial Account. Show Answer Correct Answer: C) Both Capital and Current. 6. All societies face a trade-off for every decision for which of the following reasons? A) Resources are not allocated efficiently. B) Resources are scarce. C) A decision entails zero opportunity cost. D) Some resources are always unused. Show Answer Correct Answer: B) Resources are scarce. 7. It is the use of government spending to affect the economy. A) Monetary policy. B) Fiscal policy. Show Answer Correct Answer: B) Fiscal policy. 8. When the business cycle goes down and unemployment increases and there is no growth for 2 quarters (6 months back to back), we have entered into a ..... A) Peak. B) Recession. C) Trough. D) Growth Trend. Show Answer Correct Answer: B) Recession. 9. Government spending makes up the largest portion of the nations G.D.P. A) True. B) False. Show Answer Correct Answer: B) False. 10. Economics growth is often tied to investment in machinery, new technology, and education of the population. This is because A) The only way to measure economics growth is to observe changes in these factors. B) Investment in these items are the sole determinant of output. C) All of these items improve capital. D) These items lead to a greater productivity of inputs. Show Answer Correct Answer: D) These items lead to a greater productivity of inputs. 11. Workers agree to a 10% wage increase. Everything else remaining constant, this will cause the ..... curve to shift ..... A) Demand; right. B) Demand; left. C) Supply; right. D) Supply; left. Show Answer Correct Answer: D) Supply; left. 12. A macroeconomist generally does..... A) Look for GDP data, overall prices and unemployment rate. B) Start research with control variables. C) Predict what will happen in the future. D) Make economic policy. Show Answer Correct Answer: A) Look for GDP data, overall prices and unemployment rate. 13. What is expenditure A) The total money received by an individual, household or company on a regular basis, for work or through investments. B) An estimate of income and expenditure for a set period of time which allows you to plan how much you can spend in that time. C) The total amount of money spent in a particular period of time. D) The money someone has not spent, usually through a bank or official scheme. Show Answer Correct Answer: C) The total amount of money spent in a particular period of time. 14. The welfare definition of economics is given by ..... A) Adomsmith. B) Paul. C) Alfred marshall. D) None of above. Show Answer Correct Answer: C) Alfred marshall. 15. An increase in which of the following is most likely to cause demand-pull inflation? A) Fuel costs. B) Imports of capital goods. C) Income taxes. D) Consumer spending. E) Rental price of capital. Show Answer Correct Answer: D) Consumer spending. 16. What was responsible for the bubble that led to the 2008 Financial Crisis? A) Tulips. B) Bad Car Loans. C) Bitcoin. D) Bad Mortgages. Show Answer Correct Answer: D) Bad Mortgages. 17. Which of the following is an example of a person acquiring human capital? A) John is taking an Economics course. B) Sarah is going to the store. C) Tim bought a computer. D) Kim is taking her dog for a walk. Show Answer Correct Answer: A) John is taking an Economics course. 18. The best example of a "frictionally unemployed" worker is one who: A) Reduces productivity by causing frictions in a business. B) Is laid off during a recessionary period in the economy. C) Is in the process of voluntarily switching jobs. D) Is discouraged and not actively seeking work. Show Answer Correct Answer: C) Is in the process of voluntarily switching jobs. 19. What does Per Capita Mean? A) Per Household. B) Per Worker. C) Per Object. D) Per Person. Show Answer Correct Answer: D) Per Person. 20. What does fiscal policy primarily involve? A) Management of interest rates. B) Government spending and taxation. C) Regulation of the money supply. D) Control of inflation. Show Answer Correct Answer: B) Government spending and taxation. 21. An increase in the labor force population would cause the PPF to A) Do nothing. B) Shift inward. C) Turn into a straight line. D) Shift outward. Show Answer Correct Answer: D) Shift outward. 22. Most of the discretionary spending of the federal government is spent on: A) Education. B) Space Exploration. C) Military. D) Healthcare. Show Answer Correct Answer: C) Military. 23. What type of worker would have a college qualification and training such as a plumber, hairdresser? A) Professional. B) Skilled. C) Unskilled/manual. D) Semi-skilled. Show Answer Correct Answer: B) Skilled. 24. The deficit budgets occurs when A) Tax collection is more than government expenditure. B) The government's total expenditure exceeds revenue. C) The government's total expenditure equals revenue. D) The public debts decreases. Show Answer Correct Answer: B) The government's total expenditure exceeds revenue. 25. The three major macroeconomic goals do not include A) Price level stability. B) Sustained economic growth. C) High levels of environmental quality. D) Full employment. Show Answer Correct Answer: C) High levels of environmental quality. 26. A market structure with many sellers that compete based on changing up their products ..... A) Pure or perfect competition. B) Monopolistic. C) Monopoly. D) Oligopoly. Show Answer Correct Answer: B) Monopolistic. 27. Which of the following is not a tool the fed uses to make monetary policy decisions? A) Open-Market Operations. B) Reserve Requirements. C) Taxes. D) Discount Rates. Show Answer Correct Answer: C) Taxes. 28. GDP that is adjusted for inflation A) Nominal GDP. B) Price level. C) Real GDP. D) Net national product. Show Answer Correct Answer: C) Real GDP. 29. What is the Cash Reserve Ratio (CRR)? A) The fraction of the deposits that commercial banks lend to the customers. B) The fraction of the deposits that RBI must keep with commercial banks. C) The fraction of the deposits that commercial banks must keep with RBI. D) None of above. Show Answer Correct Answer: C) The fraction of the deposits that commercial banks must keep with RBI. 30. "Studying the GDP contribution made by three sectors of the economy i.e. Primary sector, Secondary sector and Tertiary sector" is an example of? A) Microeconomics. B) Macroeconomics. C) Any of these. D) None of these. Show Answer Correct Answer: B) Macroeconomics. ← 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