This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 55 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 55 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the marginal propensity to consume is 0.75, an initial increase in aggregate spending of $ 1, 000 will lead to a total change in real GDP equal to A) $ 750. B) $ 1, 000. C) $ 4, 000. D) $ 7, 500. Show Answer Correct Answer: C) $ 4, 000. 2. If nation A has an absolute advantage over nation B in the production of a product, this implies that: A) Nation A should acquire this product by trading with B. B) Nation B could not benefit by engaging in trade with A. C) The cost of producing the good in terms of some other good's production that must be sacrificed is lower in A than in B. D) It requires fewer resources in A to produce the good than in B. Show Answer Correct Answer: D) It requires fewer resources in A to produce the good than in B. 3. The labor union that only accepted skilled workers who were difficult to replace during strikes. A) Knights of Labor. B) American Federation of Labor. C) World Wide Federation of Labor. D) Nights and Days of Labor. Show Answer Correct Answer: B) American Federation of Labor. 4. Labor refers to ..... A) People with all their efforts and abilities. B) Individuals who start a new business or bring a product to market. C) The tools, equipment, and factories used in production of goods and services. D) The "gifts of nature" or natural resources not created by human effort. Show Answer Correct Answer: A) People with all their efforts and abilities. 5. In the former Soviet Union, producers were paid for meeting output targets, not for selling products. Under those circumstances, what were the economic incentives for producers? A) To conserve on costs, so as to maintain efficiency in the economy. B) To produce enough to meet the output target, without regard for quality or cost. C) To produce those goods that society desires most. D) To produce good quality products so that society would benefit from the resources used. Show Answer Correct Answer: B) To produce enough to meet the output target, without regard for quality or cost. 6. In the mid-to late 1980s, Australia had large foreign debt. The concerns were about: A) The ability of the country to make payments in case of an economic downturn. The equity investments were suggested. B) The coming economic boom and the ability of the country to pay economic dividends. C) The accessibility of local capital for foreign companies to partially cover the debt. D) The liabilities were only 2% of the GDP and needed to be brought up to at least 25%. Show Answer Correct Answer: A) The ability of the country to make payments in case of an economic downturn. The equity investments were suggested. 7. Which of the following shifts aggregate demand to the right? A) An increase in the money supply. B) An increase in net exports at every exchange rate. C) An investment tax credit. D) All of the above are correct. Show Answer Correct Answer: D) All of the above are correct. 8. Taxation for which the tax rate regresses from high to low so that the taxpayers' average tax rate becomes greater than their marginal tax rate (even though both are falling). These take a larger proportion of poorer households' incomes A) Progressive taxation. B) Direct taxation. C) Flat rate / proportional tax. D) Regressive taxation. Show Answer Correct Answer: D) Regressive taxation. 9. The unemployment rate is equal to the number of unemployed people divided by the working age population. A) True. B) Lie. Show Answer Correct Answer: B) Lie. 10. A bulldozer is an example of ..... A) Land. B) Labor. C) Entrepreneurs. D) Capital. Show Answer Correct Answer: D) Capital. 11. Which of the following statements would Friedrich Hayek most likely to agree with? A) Managing the economy through stabilization policy is easy and effective. B) The economy will repair itself eventually. C) Markets work best when the government intervenes. D) None of the Above. Show Answer Correct Answer: B) The economy will repair itself eventually. 12. Which of the following would NOT be considered unemployed? A) A retired engineer looking for a part-time job to supplement their income. B) A drama school graduate who gives up looking for acting jobs and moves home. C) A college student home for the summer looking for a construction job. D) A laid off autoworker from Michigan who moves to California looking for a new job. Show Answer Correct Answer: B) A drama school graduate who gives up looking for acting jobs and moves home. 13. Assume that wages and prices are fully flexible and all inflation is correctly anticipated.According to the quantity theory of money, what would be the impact of expansionary monetary policy on real output and the price level? A) Real output decreases, price level decreases. B) Real output increases, price level increases. C) No impact on real output, no impact on the price level. D) No impact on real output, price level increases. E) Real output increases, no impact on price level. Show Answer Correct Answer: D) No impact on real output, price level increases. 14. Price level stability is one of the macroeconomic goals. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 15. Joe is an 18 year old high school student. If there is a sharp rise in interest rates, which situation BEST reflects how Joe's life might be impacted? A) He might need to make his clothes last a little longer. B) He might have to purchase a less-expensive car. C) He might not go out with his friends every Saturday. D) He might not be able to eat fast food as often. Show Answer Correct Answer: B) He might have to purchase a less-expensive car. 16. Which fiscal policy would Congress use during Peak? A) Increase taxes. B) Decrease government spending. C) Increase interest rates. D) Decrease interest rates. Show Answer Correct Answer: A) Increase taxes. 17. ..... is implemented by BANGKO SENTRAL NG PILIPINAS to achieve economic balance and stability. A) MONETARY IMPLEMENTATION. B) MONETARY POLICY. C) MONETARY BALANCE. D) None of above. Show Answer Correct Answer: B) MONETARY POLICY. 18. What is the Federal Reserve System? A) The central bank of the United States. B) The legislative body responsible for passing fiscal policies. C) The committee that determines the federal funds rate. D) The committee that oversees government budget deficits. Show Answer Correct Answer: A) The central bank of the United States. 19. When a country makes and sells less things over time, and people have more jobs is known as "Economic Growth." A) True. B) False. Show Answer Correct Answer: B) False. 20. In all market structures, what must firms equate to ensure allocative efficiency? A) Average cost and average revenue. B) Average cost and marginal revenue. C) Marginal cost and average revenue. D) Marginal cost and marginal revenue. Show Answer Correct Answer: C) Marginal cost and average revenue. 21. The yearly total value of all finished good/services produced within a a country is known as ..... A) Consumer Price Index. B) Aggregate Supply. C) Multiplier Effect. D) Gross Domestic Product. Show Answer Correct Answer: D) Gross Domestic Product. 22. Which of the following topics refers to the study of macroeconomics? A) The National Income. B) Buyer Behavior and Behavior. C) The Behavior and Behavior of the Producer. D) The Interaction of Demand and Supply. Show Answer Correct Answer: A) The National Income. 23. In the summer, Ashley works for a local farmer. She picks strawberries so she can save up for college. Once winter hits, she stops working in the fields and looks for a new job. What type of unemployment is she experiencing? A) Structural. B) Cyclical. C) Seasonal. D) Frictional. Show Answer Correct Answer: C) Seasonal. 24. Why are the intermediate goods not included in the National Income while measuring National Income? A) To avoid double accounting. B) It decreases income. C) Intermediate goods are not good. D) All of these. Show Answer Correct Answer: A) To avoid double accounting. 25. If demand for golf balls decreases when the price of baseball gloves decreases, we can stay that baseball gloves and golf balls players are A) Complementary goods. B) Unrelated due to the substitution effect. C) Substitute goods. D) Inferior goods. E) Normal goods. Show Answer Correct Answer: C) Substitute goods. 26. Which of the following best describes a subsidy? A) Taxes on a consumer to discourage an activity. B) Money taken from consumers to encourage an activity. C) Money given to a business to encourage an activity. D) No money changes hands. Show Answer Correct Answer: C) Money given to a business to encourage an activity. 27. Which of the following is not one of macroeconomics goal? A) ECONOMIC GROWTH. B) TRADE CYCLE. C) FULL EMPLOYMENT. D) PRICE STABILITY. Show Answer Correct Answer: B) TRADE CYCLE. 28. Suppose there is a fiscal contraction. Which of the following is a complete list of the variables that must decrease? A) Consumption and investment. B) Consumption and output. C) Consumption, output and the interest rate. D) Consumption, output and investment. Show Answer Correct Answer: D) Consumption, output and investment. 29. What would be the effect of increasing the banks' reserve requirements on the money supply? A) The effect of increasing the banks' reserve requirements on the money supply would be a decrease. B) There would be no effect on the money supply. C) The effect would be an increase in the money supply. D) The money supply would remain constant. Show Answer Correct Answer: A) The effect of increasing the banks' reserve requirements on the money supply would be a decrease. 30. The expansion or contraction of the money supply in order to influence the cost and the availability of credit is A) Contractionary Policy. B) Expansionary Policy. C) Monetary Policy. D) Fiscal Policy. Show Answer Correct Answer: C) Monetary Policy. ← 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