This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 61 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 61 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Imagine you decide to purchase a soccer ball for $ 35. Which of the following is an opportunity cost of your decision? A) The time spent deciding to spend your money. B) Something else that could have been bought. C) $ 35 cash. D) The time spent making the purchase and the tax paid on the ball. Show Answer Correct Answer: B) Something else that could have been bought. 2. How is the unemployment rate calculated? A) Number of unemployed people multiplied by the labor force. B) Number of unemployed people divided by the labor force. C) Number of employed people divided by the labor force. D) Number of employed people multiplied by the labor force. Show Answer Correct Answer: B) Number of unemployed people divided by the labor force. 3. When export increase, what are the consequences? A) Supply of foreign exchange increase and BP curve shift to the left. B) Demand of foreign exchange increase and IS curve shift to the right. C) Supply of foreign exchange increase and IS curve shift to the right. D) Exchange rate fall and BP curve to the right. Show Answer Correct Answer: C) Supply of foreign exchange increase and IS curve shift to the right. 4. Mention 5 (Five) Main Macroeconomics Indicators! A) National Income, Employment Rate, Inflation Rate, Balance Sheet Rate, and Currency Stability. B) National Income, Unemployment Rate, Deflation Rate, Balance Sheet Rate, and Currency Stability. C) Regional Income, Unemployment Rate, Infaltion Rate, Balance Sheet Rate, and Currency Stability. D) Education Rate, Public Health Rate, Inflation Rate, Balance Sheet Rate, and Currency Stability. Show Answer Correct Answer: A) National Income, Employment Rate, Inflation Rate, Balance Sheet Rate, and Currency Stability. 5. Which of the following is not an assumption of life cycle hypothesis? A) Households will not save. B) There is no change in price level and interest rate. C) The household has a known life span. D) Household income consist of measured income and transitory income. Show Answer Correct Answer: D) Household income consist of measured income and transitory income. 6. The Growth Domestic Product is measured or defined by the following elements or indicators: A) Consumption + Government Spending + Central Policies + Protectionism. B) Investment + Consumption + Taxes & Tariffs + Finances. C) Consumption + Investment + Government Spending + Net Exports. D) Consumption + Investment + Government Spending + Taxes. Show Answer Correct Answer: C) Consumption + Investment + Government Spending + Net Exports. 7. A nation's capital stock will continue to grow if the growth rate of new A) Capital investment exceeds the rate of consumer spending. B) Capital investment exceeds the rate of depreciation on existing capital. C) Consumer spending exceeds the rate of unemployment. D) Capital investment exceeds the rate of inflation. E) Consumer spending exceeds the rate of inflation. Show Answer Correct Answer: B) Capital investment exceeds the rate of depreciation on existing capital. 8. An agreement between 27 European countries to encourage open trade and easy travel between those nations. A) EU. B) ABC. C) WTO. D) NAFTA. Show Answer Correct Answer: A) EU. 9. Higher interest rates are likely to A) Have no effect on consumer spending or saving. B) Decrease consumer spending and increase consumer saving. C) Decrease both consumer spending and consumer saving. D) Increase consumer spending and decrease consumer saving. Show Answer Correct Answer: B) Decrease consumer spending and increase consumer saving. 10. Why can people not buy and sell any products they want in the U.S.? A) Too much government interference. B) Too little government interference. C) No one knows, it's one of life's great mysteries, like "is a hot dog a sandwich?". D) Not all products are legal. Show Answer Correct Answer: D) Not all products are legal. 11. Fixed exchange rate system is also known as A) Pegged exchange rate system. B) Floating exchange rate system. C) Dirty Floating. D) Both (b) and (c). Show Answer Correct Answer: A) Pegged exchange rate system. 12. Which of the following is an macroeconomics statement? A) FELDA profit increases every year. B) The price of chicken increasing during Chinese New Year. C) The price of Ipad increase about 8.5%. D) The inflation rate of Nepal is 6.5% in 2022. Show Answer Correct Answer: D) The inflation rate of Nepal is 6.5% in 2022. 13. According to the crowding-out effect, if the president and Congress increase government purchases in a recessionary gap A) The demand for money will decrease, driving interest rates down. B) The demand for money will increase, driving interest rates up. C) The supply of money will increase, driving interest rates up. D) The supply of money will decrease, driving interest rates down. Show Answer Correct Answer: B) The demand for money will increase, driving interest rates up. 14. Which action causes U.S. GDP to increase? A) The US exports machinery to Japan. B) Japan buys US Government Bonds. C) Japan sells Japanese bonds to the US. D) The US imports Japanese cars. Show Answer Correct Answer: A) The US exports machinery to Japan. 15. The Keynesian model supports A) Free Market. B) Government interference. Show Answer Correct Answer: B) Government interference. 16. The unemployment as an Macroeconomic indicator, refers to the percentage of the population that is:out of work, looking for work and willing to work. A) False. B) True. Show Answer Correct Answer: B) True. 17. A decline of a nation's output accompanied by a rise in the price level is A) Inflation. B) Stagflation. C) Hyperinflation. D) Deflation. Show Answer Correct Answer: B) Stagflation. 18. In the trade cycle what comes first? A) Boom. B) Upswing. C) Reccession. D) None, It's continuous. Show Answer Correct Answer: D) None, It's continuous. 19. What is the name of the currency (money) used by several EU member countries? A) Franc. B) Euro. C) Pound. D) Dollar. Show Answer Correct Answer: B) Euro. 20. Mr. Skinner has quit his job in order to look for another one. Mr. Skinner A) Is cyclically unemployed. B) Is frictionally unemployed. C) Is structurally unemployed. D) Is not counted as part of the labor force. Show Answer Correct Answer: B) Is frictionally unemployed. 21. The recent released CPI for 2020 shows an increase in prices of 1.4 over 2019, this is used to calculate A) Frictional Unemployment. B) Unemployment Rate. C) Inflation Rate. D) Nominal GDP. Show Answer Correct Answer: C) Inflation Rate. 22. What does Investment represent in macroeconomics? A) Spending by households on goods and services. B) Spending by businesses on capital goods. C) Spending by the government on public goods. D) Spending by foreign countries on domestic goods. Show Answer Correct Answer: B) Spending by businesses on capital goods. 23. An income tax is considered progressive if, as income rises A) The marginal rate of tax falls. B) The marginal rate of tax rises. C) The average rate of tax is constant. D) The marginal rate of tax is constant. Show Answer Correct Answer: B) The marginal rate of tax rises. 24. Which of the following is not an investment? A) Stocks. B) Shares. C) Wage. D) Property. Show Answer Correct Answer: C) Wage. 25. What is the main reason for employing contractionary fiscal policy in a time of strong economic growth? A) To encourage borrowing and investment in the economy. B) To reduce unemployment and create more job opportunities. C) To control inflation and prevent the economy from overheating. D) To stimulate economic growth and increase consumer spending. . Show Answer Correct Answer: C) To control inflation and prevent the economy from overheating. 26. Total of real production of final goods and services available in the country. A) AGGREGATE DEMAND. B) AGGREGATE SUPPLY. Show Answer Correct Answer: B) AGGREGATE SUPPLY. 27. What did prisoners (POWs) in camps during World War 2 use to carry out buying and selling transactions? A) Cigarette. B) Perak. C) It's not. D) Barter. Show Answer Correct Answer: A) Cigarette. 28. Which of the following studies the problems of economics at individual levels? A) Microeconomics. B) Macroeconomics. C) Both Micro and Macro economics. D) None of above. Show Answer Correct Answer: A) Microeconomics. 29. In which direction will both aggregate demand and aggregate supply curves shift if there is an increase respectively? A) Right. B) Left. Show Answer Correct Answer: A) Right. 30. A graphic representation of the relationship between price and quantity demand of a certain good or service, with quantity on the horizontal axis and the price on the vertical axis A) Excess Demand. B) Demand Curve. C) Supply Curve. D) Excess Supply. Show Answer Correct Answer: A) Excess Demand. ← 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