This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 62 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 62 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following represents the equation for finding elasticity of demand? A) % change in price / % change in quantity. B) % change in price / % change in market demand. C) % change in substitutes / % change in value demanded. D) % change in quantity demanded / % change in price. Show Answer Correct Answer: D) % change in quantity demanded / % change in price. 2. A fall in prices is called ..... A) Inflation. B) GDP. C) Deflation. D) Real GDP. Show Answer Correct Answer: C) Deflation. 3. Ratio of total consumption to total income is definition of ..... A) APS. B) APC. C) MPS. D) MPC. Show Answer Correct Answer: B) APC. 4. Define outsourcing. A) The process by which businesses or other organizations develop international influence or start operating on an international scale. B) The action of making or manufacturing from components or raw materials, or the process of being so manufactured. C) A practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. D) None of above. Show Answer Correct Answer: C) A practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. 5. During a recession, government transfer payments automatically ..... and tax revenue automatically ..... A) Falls; falls. B) Increase; falls. C) Increase; increases. D) Fall; increases. Show Answer Correct Answer: B) Increase; falls. 6. Aggregation is involved in: A) Microeconomics. B) Macroeconomics. C) Both (a) and (b). D) None of these. Show Answer Correct Answer: C) Both (a) and (b). 7. Which of the following measures the changes in the prices of a "market basket" of goods and services? A) The retail trade survey. B) The Survey of Manufacturers. C) The GDP price index. D) The Consumer Price Index. Show Answer Correct Answer: D) The Consumer Price Index. 8. Iron, minerals, coal and plants are examples of which productive resource? A) Land. B) Labor. C) Entrepreneurship. D) Capital. Show Answer Correct Answer: A) Land. 9. Suppose that an economy is growing at a real rate of 3% per year. About how long will it take for this economy to double in size? A) 24 years. B) 18 years. C) 12 years. D) 9 years. E) 33 years. Show Answer Correct Answer: A) 24 years. 10. Which of the following is a corporation that issues stock that can be freely bought and sold? A) Private corporation. B) Nonprofit corporation. C) Multinational corporation. D) Public corporation. Show Answer Correct Answer: D) Public corporation. 11. Each year, any deficit in the federal government's budget adds to the country's A) National income. B) National debt. C) National surplus. D) None of above. Show Answer Correct Answer: B) National debt. 12. If the income increases by £800, spending rises by £560 and saving grows by £240, what will be the proportion of Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS)? A) MPC=0.8MPS=0.2. B) MPC=0.7MPS=0.3. C) MPC=0.3MPS=0.7. D) MPC=0.2MPS=0.8. Show Answer Correct Answer: B) MPC=0.7MPS=0.3. 13. What would be the appropriate monetary policy during a period of low inflation and steady GDP growth? A) Continue to keep interest rates low to encourage low inflation. B) Buy bonds to stop business investment. C) Just monitor the situation, do nothing. D) Sell bonds to encourage even more business investment. Show Answer Correct Answer: C) Just monitor the situation, do nothing. 14. If the Fed decreases the money supply, it is implementing a(n) ..... policy A) Expansionary fiscal. B) Contractionary fiscal. C) Expansionary monetary. D) Contractionary monetary. Show Answer Correct Answer: D) Contractionary monetary. 15. A local government begins offering vocational training programs for people who are struggling to find jobs. Which type of unemployment is the government seeking to address? A) Seasonal unemployment. B) Structural unemployment. C) Cyclical unemployment. D) Frictional unemployment. Show Answer Correct Answer: B) Structural unemployment. 16. To calculate the unemployment rate an economist would need the total number of unemployed people and which other number? A) Total number of discouraged workers. B) The inflation rate. C) Total number of people in the labor force. D) Number of transactions in the resource market. Show Answer Correct Answer: C) Total number of people in the labor force. 17. John Quincy Adams is known as ..... A) The Father of economics and capitalism. B) The sixth president of the United States. Show Answer Correct Answer: B) The sixth president of the United States. 18. Dalam economic value of time, hubungan Return on capital ..... A) Sama dengan dengan Return on money. B) Tidak sama dengan dengan Return on money. Show Answer Correct Answer: B) Tidak sama dengan dengan Return on money. 19. Higher production costs can lead to A) Unemployment. B) Increase output. C) Inflation. D) Deflation. Show Answer Correct Answer: C) Inflation. 20. Tax cuts are examples of which policy? A) Contractionary monetary policy. B) Expansionary fiscal policy. C) Contractionary fiscal policy. D) Expansionary monetary policy. Show Answer Correct Answer: B) Expansionary fiscal policy. 21. What is the natural rate of unemployment? A) The rate of unemployment when there is only frictional and structural unemployment. B) The rate of unemployment when there is 0% unemployment. C) The rate of unemployment when there is only cyclical unemployment. D) The rate of unemployment when there is high inflation. Show Answer Correct Answer: A) The rate of unemployment when there is only frictional and structural unemployment. 22. Which best describes the characteristics of a Market economy? A) Products are produced based on what was produced in the past or customs. B) Producers decide what to produce based on what price consumer are willing to pay. Show Answer Correct Answer: B) Producers decide what to produce based on what price consumer are willing to pay. 23. When all who are willing and able to work have the opportunity to do so. A) Price Stability. B) Economic Growth. C) Full Employment. D) None of above. Show Answer Correct Answer: C) Full Employment. 24. Which of the following is not one of the components of GDP? A) Imports. B) Exports. C) Income. D) Government purchases. E) Consumption. Show Answer Correct Answer: C) Income. 25. American consumers spend more of their money on A) Durable goods. B) Non-durable goods. C) Services. D) None of above. Show Answer Correct Answer: C) Services. 26. An example of expansionary fiscal policy would be A) Cutting taxes. B) Cutting prices of consumer goods. C) Cutting production of consumer goods. D) Cutting government spending. Show Answer Correct Answer: A) Cutting taxes. 27. An increase in demand will shift the demand curve ..... A) No change. B) Right. C) Left. D) No movement. Show Answer Correct Answer: B) Right. 28. Inflation can be measured by the A) Change in the consumer price index. B) Change in the price of specific commodity. C) Percentage change in the price of specific commodity. D) Percentage change in the consumer price index. Show Answer Correct Answer: D) Percentage change in the consumer price index. 29. This is money that has another useful purpose. A) Fiat. B) Securities. C) Commodity. D) Debt. Show Answer Correct Answer: C) Commodity. 30. A tax that takes a larger percentage of income from high-income groups than from low income groups is known as a ..... A) Proportional Tax. B) Regressive Tax. C) Progressive Tax. D) Excise Tax. Show Answer Correct Answer: C) Progressive Tax. ← 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