This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 52 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 52 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An increase in personal income taxes will most likely result in which of the following changes in real GDP and the price level in the shortrun? A) Increase Real GDP; Decrease Price Level. B) Increase Real GDP; Increase Price Level. C) Decrease Real GDP; Decrease Price Level. D) Decrease Real GDP; Increase Price Level. Show Answer Correct Answer: C) Decrease Real GDP; Decrease Price Level. 2. When the value of an asset falls due to age, wear, or obsolescence, it is called: A) Deflation. B) Degeneration. C) Depreciation. D) Disinflation. E) Devaluation. Show Answer Correct Answer: C) Depreciation. 3. TRUE or FALSE:We can have everything that we want because we have unlimited resources. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 4. Calculation of GDP using the expenditure approach includes: A) Private consumption, net exports, government spending, public investment. B) Labor wages, company profits, depreciation. C) Government payments to individuals. D) All of the above is true. Show Answer Correct Answer: A) Private consumption, net exports, government spending, public investment. 5. The study of an entire economy. A) Macroeconomics. B) Microeconomics. C) Opportunity cost. D) None of above. Show Answer Correct Answer: A) Macroeconomics. 6. The primary role of the Federal Reserve Bank is to steer the economy by A) Controlling the budget. B) Setting spending levels. C) Controlling the money supply. D) None of above. Show Answer Correct Answer: C) Controlling the money supply. 7. Which of the following is not a potential cause of real wage unemployment? A) Minimum wage laws. B) Strong labour unions. C) Inadequate aggregate demand. D) Agreements between workers and employees. Show Answer Correct Answer: C) Inadequate aggregate demand. 8. What are capital gains? A) When you lose money. B) Adam Smith. C) When you spend money on food. D) A profit from the sale of property or investment. Show Answer Correct Answer: D) A profit from the sale of property or investment. 9. Current accounts of commercial banks are part of M1 money. A) Lie. B) True. Show Answer Correct Answer: B) True. 10. An increase in the quantity of capital makes the AS curve to shift ..... A) Inward or Left side. B) Outward or Right side. C) Both inward and outward. D) Both Left and Right side. Show Answer Correct Answer: B) Outward or Right side. 11. The Soviet Union was an example of a ..... A) Command economy. B) Traditional economy. C) Market economy. D) Mixed economy. Show Answer Correct Answer: A) Command economy. 12. Which of the following helps to develop & expand the microeconomics theories? A) Theory of Income. B) Adam Smith. C) Keynes. D) Macroeconomics. Show Answer Correct Answer: D) Macroeconomics. 13. What is a problem with the barter system? A) It allows for the production possibilities curve to shift. B) It can be difficult to figure out what is scarce. C) It utilizes varying currencies. D) Consumers do not know the real value of a good. Show Answer Correct Answer: D) Consumers do not know the real value of a good. 14. The term, "land" means: A) The natural resources used to produce goods or services. B) Work the people do to produce goods and services. C) Goods not created for their own use, but to make other goods/services. D) Person who organizes the factors of production to produce goods/services; business owners. Show Answer Correct Answer: A) The natural resources used to produce goods or services. 15. Employment, gross domestic product, and inflation is: A) Microeconomics. B) Macroeconomics. Show Answer Correct Answer: A) Microeconomics. 16. Aggregate demand is the total spending in the economy, consisting of: A) C+I+G+X. B) S+T+M=C+I+G. C) C+S+T+M+X. D) C+I+G+X-M. Show Answer Correct Answer: D) C+I+G+X-M. 17. Which President is on the $ 5 dollar Bill? A) Hamilton. B) Lincoln. C) Washington. D) Jackson. Show Answer Correct Answer: B) Lincoln. 18. Unanticipated inflation A) Borrowers who borrow at fixed rates. B) Hurts lenders who lend at fixed rates. Show Answer Correct Answer: B) Hurts lenders who lend at fixed rates. 19. An example of a country with total government control of the economy is: A) New Zealand. B) North Korea. C) USA. D) None of above. Show Answer Correct Answer: B) North Korea. 20. Father of Modern Economics 2. Wrote the Wealth of Nations 3. Defined the Division of Labor 4. Defined the Invisible Hand A) Adam Smith. B) Karl Marx. C) John Meynard Keynes. D) Friedrich Hayek. Show Answer Correct Answer: A) Adam Smith. 21. The term "leverage" refers to ..... A) Political influence the financial sector exercises. B) The use of stockholder equity to increase assets. C) The use of borrowed money to increase one's rate of return. D) The power that bondholders have in bankruptcy proceedings. E) None of these statements accurately describes leverage. Show Answer Correct Answer: C) The use of borrowed money to increase one's rate of return. 22. In the multiplier model, aggregate production curve shows that real production equals real income A) True. B) False. Show Answer Correct Answer: A) True. 23. Nominal Gross Domestic Product (GDP) will always be higher than real GDP when: A) Prices are falling. B) Prices are unstable. C) Prices are rising. D) Prices are stable. Show Answer Correct Answer: C) Prices are rising. 24. Autonomous items are also known as below the line items. A) True. B) False. Show Answer Correct Answer: B) False. 25. Recommend the fiscal tool to control deflation. A) Decrease the tax. B) Decrease the rate of interest. C) Increase the rate of interest. D) Increase the tax. Show Answer Correct Answer: D) Increase the tax. 26. The trend of the economy is A) Long run deflation. B) Long unemployment rate. C) Long run growth path of the economy. D) Short term production capacity. Show Answer Correct Answer: C) Long run growth path of the economy. 27. Shona is an unemployed engineer, who no longer has a job since the end of the mining investment boom. Which kind of unemployment is she experiencing? A) Frictional. B) Structural. C) Seasonal. D) Cyclical. Show Answer Correct Answer: D) Cyclical. 28. Some economists argue the reduction of a minimum wage and lower welfare will help reduce unemployment A) The cheaper wage rate will means more people will be employed. B) It provides opportunities for low skilled workers to get a job. C) The low income means people would have to work to survive. D) All of these responses. Show Answer Correct Answer: D) All of these responses. 29. The fluctuation in the value of money seen from one country's currency compared to other countries is material for the stability of the value of the currency based on the approach..... A) Closed economy. B) Open economy. Show Answer Correct Answer: B) Open economy. 30. Because prices are sticky, positive demand shock will lead to: A) A decrease in unemployment. B) An increase in unemployment. C) An unpredictable change in unemployment. D) No change in unemployment. Show Answer Correct Answer: A) A decrease in unemployment. ← 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