This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 54 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 54 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Tax multiplier:$\frac{\Delta Y}{\Delta T}=$ A) $\frac{-MPC}{MPC-1}$. B) $\frac{MPC}{1-MPC}$. C) $\frac{-MPC}{1-MPC}$. D) $\frac{MPC-1}{-MPC}$. Show Answer Correct Answer: C) $\frac{-MPC}{1-MPC}$. 2. ..... studies the problems related to measurement of national income. A) Microeconomics. B) International economics. C) Macroeconomics. D) None of above. Show Answer Correct Answer: C) Macroeconomics. 3. China placed a 25% tax on imported American chicken. A) Tariff. B) Quota. C) Embargo. D) None of above. Show Answer Correct Answer: A) Tariff. 4. All of the following are interaction principles EXCEPT: A) Trade can make everyone better off. B) The standard of living depends on a country's production. C) Governments can sometimes improve economic outcomes. D) Markets are usually a good way to organize economic activity. Show Answer Correct Answer: B) The standard of living depends on a country's production. 5. Compared to fiscal policy, which of the following is an advantage of using monetary policy to attain macroeconomic goals? A) It takes a long time for fiscal policy to have an effect on the economy, but the effects of monetary policy are immediate. B) The effects of monetary policy are certain and predictable, while the effects of fiscal policy are not. C) The implementation of monetary policy is not slowed down by the same budgetary process as fiscal policy. D) The economists who help conduct monetary policy are smarter than those who help with fiscal policy. Show Answer Correct Answer: C) The implementation of monetary policy is not slowed down by the same budgetary process as fiscal policy. 6. A government wishes to reduce aggregate demand by increasing interest rates. This will have the effect of reducing A) Industrial costs. B) The external value of the domestic currency. C) The propensity to save. D) Disposable income. Show Answer Correct Answer: D) Disposable income. 7. The total quantity of all goods and services consumers are willing and able to purchase at each price level in a given period of tim A) Aggregate supply. B) Aggregate demand. Show Answer Correct Answer: B) Aggregate demand. 8. What causes the long-run Phillips curve to shift? A) Changes in cyclical unemployment. B) Changes in expectations about inflation. C) Changes in structural or frictional unemployment. D) Shifts in the short-run aggregate supply (SRAS) curve. E) Shifts in the aggregate demand curve. Show Answer Correct Answer: C) Changes in structural or frictional unemployment. 9. The economy is experiencing negative GDP growth and high unemployment. Which fiscal policy action should the government implement in an attempt to fix this problem? A) Raise taxes. B) Decrease interest rates. C) Increase reserve requirements. D) Increase spending. Show Answer Correct Answer: D) Increase spending. 10. All of the following could cause unemployment EXCEPT A) A change in seasons. B) A decrease in taxes. C) A mismatch between job requirements and worker skill. D) People being temporarily between jobs. Show Answer Correct Answer: B) A decrease in taxes. 11. Which of the following is the formula to calculate GNP, based on the expenditure approach?[Antara yang berikut, yang manakah merupakan formula untuk mengira GNP mengikut kaedah perbelanjaan?] A) GNP = C + I + G + (X + M) [GNP = C + I + G + (X + M)]. B) GNP = C + I + G + M-X [GNP = C + I G + M-X]. C) GNP = C + I + G-(M-X) [GNP = C + I + G-(M-X)]. D) GNP = C + I + G + X + M [GNP = C + I + G + X + M]. Show Answer Correct Answer: C) GNP = C + I + G-(M-X) [GNP = C + I + G-(M-X)]. 12. TRUE or FALSE:The opportunity cost method for valuing household production looks at what it would cost to have the same services provided by paid workers. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 13. The calculation of GDP excludes the value of (I) A used economics textbook from the bookstore (III) A car produced in a foreign country (II) Homework help provided by a teacher to her own child (IV) New harvesting equipment for the farm A) (I) and (II). B) (I), (III) and (III). C) (I) and (III). D) ) All of the above. Show Answer Correct Answer: B) (I), (III) and (III). 14. The ..... market equilibrium shown by the IS curve A) Capital. B) Textile. C) Money. D) Goods. Show Answer Correct Answer: D) Goods. 15. What is the percentage rate or level of inflation if it is known that the consumer price index in April 2020 was 104.80 and in May it was 104.72..... A) 0.075. B) 0.076. C) 0.078. D) 0.077. Show Answer Correct Answer: B) 0.076. 16. Which of the following is a disadvantage of sole proprietorship? A) They're hard to start up. B) Personal property is protected under bankruptcy. C) The owner takes all the risk and responsibility. D) The owner doesn't get to keep all the profits. Show Answer Correct Answer: C) The owner takes all the risk and responsibility. 17. Expansionary fiscal policy abroad A) Raises world interest rate. B) Decreases world interest rate. C) Increases investment. D) Reduces saving. Show Answer Correct Answer: A) Raises world interest rate. 18. The ..... on a project is the profit earned on the project expressed as a percentage of its cost. A) Long-Term Interest Rates. B) Short-Term Interest Rates. C) Rate of Return. D) Crowding Out. Show Answer Correct Answer: C) Rate of Return. 19. Decrease in ..... causes investment spending to rise which shifts aggregate demand curve up and raises the income level. A) Income. B) Saving. C) Production. D) Interest rate. Show Answer Correct Answer: D) Interest rate. 20. GDP = C + I + G + (X-M) In this model, the "(X-M)" represents the A) Total of the dollar value of goods sent abroad and goods purchased from abroad. B) Difference between the dollar value of goods sent abroad and goods purchased from abroad. C) Total investments in the United States by foreign nationals. D) Total investments in other nations by US citizens. Show Answer Correct Answer: B) Difference between the dollar value of goods sent abroad and goods purchased from abroad. 21. This is the use of government policy to reduce the severity of recessions and rein in excessively strong expansions. A) Stabilization Policy. B) Contractionary Fiscal Policy. C) Expansionary Fiscal Policy. D) None of above. Show Answer Correct Answer: A) Stabilization Policy. 22. An increase in the price level within a country will lead to which of the following scenarios? A) A rightward shift in both of the curves. B) A rightward shift in the SRAS curve and a leftward shift in the AD curve. C) An increase in quantity supplied and a decrease in quantity demanded. D) A negative supply shock. Show Answer Correct Answer: C) An increase in quantity supplied and a decrease in quantity demanded. 23. The economic indicator that measures the changes in the costs of a "basket" of goods and services typically purchased by consumers. A) Consumer Cost Index. B) Consumer Price Index. C) Real GDP. D) GDP. Show Answer Correct Answer: B) Consumer Price Index. 24. Which of the following best describes "a state of economic hardship characterized by high levels of unemployment and a decline in manufacturing and income over a long period of time" ? A) Recession. B) Depression. C) Deflation. D) Inflation. Show Answer Correct Answer: B) Depression. 25. The rate of inflation will fall if A) Aggregate demand stays constant and productivity increases. B) Aggregate supply falls. C) Aggregate supply is constant. D) Aggregate demand is constant and factor costs rise. Show Answer Correct Answer: A) Aggregate demand stays constant and productivity increases. 26. The sale of U.S. treasury bonds on the open market will cause a(n) ..... in the U.S. price level and a(n) ..... of the U.S. dollar in the foreign exchange market. A) Increase, depreciation. B) Decrease, appreciation. C) Decrease, depreciation. D) Increase, appreciation. Show Answer Correct Answer: B) Decrease, appreciation. 27. India has a higher productivity than the United States because they have more people. A) True. B) False. Show Answer Correct Answer: B) False. 28. If the Federal Reserve wants to increase the amount of money in circulation then they should ..... A) Sell bonds. B) Raise the reserve requirement. C) Lower the reserve requirement. D) Raise the discount rate. Show Answer Correct Answer: C) Lower the reserve requirement. 29. What can the government do to slow the economy down? A) Spend more. B) Lower taxes. C) Spend less. D) Raise taxes. Show Answer Correct Answer: D) Raise taxes. 30. Macroeconomics is the study of " ..... " economics. A) Trickle-down. B) Worldwide. C) Personal. D) Large-scale. Show Answer Correct Answer: D) Large-scale. ← 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