This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 57 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 57 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not non tax revenue receipts of government? A) Excise duty. B) Escheat. C) Special assessment. D) Fees and fines. Show Answer Correct Answer: A) Excise duty. 2. 'Income of the family' is the example of which variable? A) Flow variable. B) Stock variable. C) Inventory. D) Neother stock nor flow. Show Answer Correct Answer: A) Flow variable. 3. Explain the concept of fiscal policy. A) Fiscal policy is the use of government spending and taxation to control the weather. B) Fiscal policy is the use of government spending and taxation to influence the economy. C) Fiscal policy is the use of government spending and taxation to influence foreign policy. D) Fiscal policy is the use of government spending and taxation to determine the value of currency. Show Answer Correct Answer: B) Fiscal policy is the use of government spending and taxation to influence the economy. 4. If a country imports more than it exports, it is experiencing a ..... A) Budget Deficit. B) Trade Deficit. C) Trade Surplus. D) Budget Surplus. Show Answer Correct Answer: B) Trade Deficit. 5. An estimate of future revenues and expenses. A) Personal property. B) Real property. C) Tax exempt. D) Budget. Show Answer Correct Answer: D) Budget. 6. What percent is considered the perfect "Goldilocks" inflation rate? A) 5%. B) 10%. C) 2%. D) 1%. Show Answer Correct Answer: C) 2%. 7. Corn/TV Sets A 0/6 B 12/5 C 22/4 D 30/3 E 36/2 F 40/1 G 42/0A combination of 30 units of corn and 2 TV sets: A) Illustrates inefficient use of existing resources. B) Could not be produced with the current supply of resources and existing level of technology. C) Is possible only with full employment and full production of existing resources. D) Would represent a point on the PP curve. Show Answer Correct Answer: A) Illustrates inefficient use of existing resources. 8. Statisticians use the CPI stats to calculate what? A) Producer Prices Index. B) Unemployement. C) Stable Prices. D) Inflation. Show Answer Correct Answer: D) Inflation. 9. . If the central bank sells $ 500 in bonds to a bank that has issued $ 10, 000 in loans and is exactly meeting the reserve requirement of 10%, what will happen to the amount of loans and to the money supply in general? A) The amount of loans will increase and the money supply will increase. B) The amount of loans will decrease and the money supply will increase. C) The amount of loans will increase and the money supply will decrease. D) The amount of loans will decrease and the money supply will decrease. Show Answer Correct Answer: D) The amount of loans will decrease and the money supply will decrease. 10. Human Capital refers to: A) The goods and services humans produce that satisfy their needs and wants. B) The machinery, tools and equipment used to produce goods and services. C) The knowledge, skills, and abilities workers acquire through education education, training, and experience. D) The land, water, and mineral deposits humans us to produce goods and services. Show Answer Correct Answer: C) The knowledge, skills, and abilities workers acquire through education education, training, and experience. 11. When government debt is financed internally, future generations will A) Inherit a lower tax liability. B) Inherit neither higher taxes nor interest payment liability. C) Inherit higher taxes. D) Do none of the above. Show Answer Correct Answer: C) Inherit higher taxes. 12. "A ..... market is a market in which there are many buyers and sellers of the same good or service." ? A) Cooperative. B) Competitive. C) Contemptive. D) Conservative. Show Answer Correct Answer: B) Competitive. 13. Below are direct policies to combat inflation, EXCEPT A) Controlling prices on consumer goods. B) Strengthening currency value to reduce the cost of imports. C) Family planning in the long run. D) Increasing the local products to reduce imports. Show Answer Correct Answer: C) Family planning in the long run. 14. True or False ..... the Federal Reserve helps with fiscal policy A) False. B) True. Show Answer Correct Answer: A) False. 15. In case of Appreciation of Rupees against US Dollar (foreign currency), what will be the impact of it on Indian Imports A) Don't Know. B) No change. C) Increase. D) Decrease. Show Answer Correct Answer: C) Increase. 16. The Demand curve for labor is: A) Right Shift. B) Left Shift. C) Downward Slope. D) Upward Slope. Show Answer Correct Answer: C) Downward Slope. 17. Jose just purchased new tires for his ten-year-old car. Is this purchase counted towards GDP? A) Yes. B) No. Show Answer Correct Answer: A) Yes. 18. A limit on the quantity of a good that may be imported in a given time period is called: A) A quota. B) A tariff. C) An embargo. D) Dumping. Show Answer Correct Answer: A) A quota. 19. The deliberate use of government spending and taxation to influence economic activity is called: A) RET. B) Fiscal policy. C) Monetary policy. D) Classical economics. E) Smithism. Show Answer Correct Answer: B) Fiscal policy. 20. Which of the following is an example for microeconomics A) Total output. B) Employment. C) Price determination of a product. D) Inflation and deflation. Show Answer Correct Answer: C) Price determination of a product. 21. Federal Open Market Committee (FOMC) A) Committee that makes decisions that affect the economy as a whole by manipulating the money supply. B) An institution that lends money to other banks; also where government does its banking business. C) Spending for federal programs that must receive approval each year. D) Material well-being of an individual, measured by how well their needs and wants are satisfied. Show Answer Correct Answer: A) Committee that makes decisions that affect the economy as a whole by manipulating the money supply. 22. When consumption increases unemployment will A) Stay the same. B) Decrease. C) Result in stagflation. D) Increase. Show Answer Correct Answer: B) Decrease. 23. GPD that is adjusted for inflation is called: A) Real GDP. B) Nominal GDP. Show Answer Correct Answer: A) Real GDP. 24. A sudden decrease in aggregate supply will result in:I. Real output will fallII. Price level increasesIII. Increase in interest ratesIV. Increased investment A) I and II only. B) I, II, and III only. C) II, III, and IV only. D) I, II, III, and IV. Show Answer Correct Answer: B) I, II, and III only. 25. What factor determine the slope of IS? A) Interest sensitivity of money demand. B) Interest elasticity of investment. C) High sensitive of investment. D) Low sensitive of investment. Show Answer Correct Answer: B) Interest elasticity of investment. 26. The demand curve for money is A) A downward slope. B) A vertical line. C) A horizontal line. D) A upward slope . Show Answer Correct Answer: A) A downward slope. 27. Which best explains the law of demand? A) As the price of a good decreases, the amount that consumers are willing to purchase increases. B) As the amount of a good increases, the price that consumers are willing to pay increases. C) As the amount of a good increases, the price that consumers are willing to pay decreases. D) As the price of a good decreases, the amount that consumers are willing to purchase decreases. Show Answer Correct Answer: A) As the price of a good decreases, the amount that consumers are willing to purchase increases. 28. It is possible for an economy to produce beyond it's long run aggregate supply because ..... A) It can "dip into" its natural unemployment rate to hire people who may be temporarily unemployed. B) It can use a different measure to account for production. C) It can find more resources. D) It can figure out how to produce more efficiently. Show Answer Correct Answer: A) It can "dip into" its natural unemployment rate to hire people who may be temporarily unemployed. 29. This tax, in its effect, takes a higher percentage from people with higher incomes. A) Ingressive. B) Proportional. C) Progressive. D) Regressive. Show Answer Correct Answer: C) Progressive. 30. Consumer Price Index (CPI) is a measurement of ..... A) Exchange Rates. B) Unemployment. C) International Trade. D) Inflation. Show Answer Correct Answer: D) Inflation. ← 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