This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 63 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 63 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. These are IOUs from the U.S. government to people that finance a little piece of the government's debt in exchange for a very small amount of interest A) Government Credit. B) Government Bonds, or Securities. C) Government Holdings. D) Government Cash. Show Answer Correct Answer: B) Government Bonds, or Securities. 2. If LRR is.25, what will be money multiplier A) 4. B) 5. C) 2. D) 1. Show Answer Correct Answer: A) 4. 3. The macroeconomic policy laid down by the central bank A) Inflation Rate. B) Demand-Pull Inflation. C) Monetary Policy. D) Fiscal Policy. Show Answer Correct Answer: C) Monetary Policy. 4. When the economy is experiencing an unemployment rate between 4-5%, an economist would say the economy is A) On the cusp of a recession. B) Entering into inflation. C) At full employment. D) At an unnatural rate. Show Answer Correct Answer: C) At full employment. 5. What are the criticisms of the unemployment rate? A) Discouraged workers:some people are no longer looking for a job because they have given up. Underemployed workers:Someone who wants more hours but can't get them is still considered employed. B) Percent of population in the labor force. If people leave the labor force, the unemployment rate falls. C) Index numbers assigned to each year that show how prices have changed relative to a specific base year (base year given 100). D) Unemployment caused by a recession. As demand for goods/services falls, demand for labor falls and workers are fired. Show Answer Correct Answer: A) Discouraged workers:some people are no longer looking for a job because they have given up. Underemployed workers:Someone who wants more hours but can't get them is still considered employed. 6. Illegal goods and services that are produced are ..... A) Not counted in GDP. B) Included in the consumption category of GDP. C) Included in GDP when the authorities can prove the amount. D) Included as an estimate in GDP. Show Answer Correct Answer: A) Not counted in GDP. 7. What is the difference between a household and a firm? A) A household consists of either an individual or a group of people who share their income; a firm is an organization that produces goods and services for sale. B) A firm consists of either an individual or a group of people who share their income; a household is an organization that produces goods and services for sale. C) They are the same. D) None of above. Show Answer Correct Answer: A) A household consists of either an individual or a group of people who share their income; a firm is an organization that produces goods and services for sale. 8. Higher taxes tend to A) Lesson government spending. B) Increase unemployment. C) Increase consumption. D) Cause inflation. Show Answer Correct Answer: B) Increase unemployment. 9. Interest rate that the Federal Reserve charges commercial banks for loans A) Tight money policy. B) Inside lag. C) Monetary policy. D) Discount rate. Show Answer Correct Answer: D) Discount rate. 10. Reduces extreme ups and downs in our economy and helps to keep prices from changing too quickly A) Stability. B) Full employment. C) Security. D) Growth. Show Answer Correct Answer: A) Stability. 11. Macroeconomics is concerned with all of the following except ..... A) The growth of real output. B) The level of unemployment. C) The general level of prices. D) Production methods and costs. Show Answer Correct Answer: D) Production methods and costs. 12. The aggregate demand curve will shift to the right as the result of A) An increase in corporate business taxes. B) A decrease in the real interest rate. C) Recessions in foreign nations that trade with the United States, causing a lower demand for U.S. products. D) An increase in the nominal interest rate. Show Answer Correct Answer: B) A decrease in the real interest rate. 13. Fiscal policy refers to changes in A) State and local taxes and purchases that are intended to achieve macroeconomic policy objectives. B) The money supply and interest rates that are intended to achieve macroeconomic policy objectives. C) Federal taxes and purchases that are intended to achieve macroeconomic policy objectives. D) Federal taxes and purchases that are intended to fund the war on terrorism. Show Answer Correct Answer: C) Federal taxes and purchases that are intended to achieve macroeconomic policy objectives. 14. The federal government is attempting to encourage spending by consume rs and businesses, a fiscal policy BEST serving this purpose would be A) Decreasing government spending. B) Balancing the budget. C) Reducing the investment tax credit. D) Decreasing taxes. Show Answer Correct Answer: D) Decreasing taxes. 15. Final goods are used by the A) Consumers. B) Producers. C) Government. D) All of these. Show Answer Correct Answer: D) All of these. 16. If the price of jelly increased at the same time that the price of peanuts decreased, what would happen to the market for peanut butter? A) Eq P increases, but we don't know what happens to Eq Q. B) Eq P decreases, but we don't know what happens to Eq Q. C) Eq Q decreases, but we don't know what happens to Eq P. D) Eq Q increases, but we don't know what happens to Eq P. Show Answer Correct Answer: B) Eq P decreases, but we don't know what happens to Eq Q. 17. Which of the followings is a monetary policy tool? A) An increase in public debt. B) A change in required reserves ratio of commercial bank. C) A reduction in personal income tax. D) Controlling government expenditure. Show Answer Correct Answer: B) A change in required reserves ratio of commercial bank. 18. If the government ..... spending on research and development, technological progress should ..... and economic growth will be ..... rapid. A) Taxes; increase; less. B) Subsidizes; decrease; less. C) Taxes; decrease; more. D) Subsidizes; increase; more. E) Subsidizes; increase; less. Show Answer Correct Answer: D) Subsidizes; increase; more. 19. The word macro is derived from the greek word ..... A) Mikros. B) Mukos. C) Makros. D) Mycros. Show Answer Correct Answer: C) Makros. 20. If the prices of input resources increase, then this event would most likely: A) Decrease aggregate supply. B) Increase aggregate supply. C) Decrease aggregate demand. D) Increase aggregate demand. Show Answer Correct Answer: A) Decrease aggregate supply. 21. If the nominal wage doubles and the price level does not change, how will the real wage change? A) Decrease by 2 times. B) 2 times increase. C) I don't know. D) Will not change. Show Answer Correct Answer: B) 2 times increase. 22. Which of the following is NOT a type of social security insurance? A) Provident Fund and Pension. B) Health Insurance and Medical Benefit. C) Disability Benefit. D) Life Insurance. Show Answer Correct Answer: D) Life Insurance. 23. What does the vertical axis represent on the aggregate demand curve? A) Total Input. B) Total Output. C) Price Level. D) Both A&B. Show Answer Correct Answer: C) Price Level. 24. What are the economic effects of unemployment? A) Unemployment has negative effects on consumer spending, economic growth, government revenue, and social well-being. B) Unemployment has positive effects on consumer spending, economic growth, government revenue, and social well-being. C) Unemployment has no effect on consumer spending, economic growth, government revenue, and social well-being. D) Unemployment has only negative effects on social well-being. Show Answer Correct Answer: A) Unemployment has negative effects on consumer spending, economic growth, government revenue, and social well-being. 25. What is a metric we can use to calculate inflation and deflation? A) CPI. B) GDP and GNP. C) Stocks. D) Porter's 5 Forces. Show Answer Correct Answer: A) CPI. 26. When deviations below the inflation target are seen to be less important than deviations above the target A) Balanced inflation target. B) Unbalanced inflation target. C) Asymmetric inflation target. D) Symmetric inflation target. Show Answer Correct Answer: C) Asymmetric inflation target. 27. One of the important parts of economics is interdependence. Which of the following is an example of interdependence? A) People growing their food. B) People cooking food at home. C) People often move to places that aren't as crowded. D) People need goods and services provided by other people. Show Answer Correct Answer: D) People need goods and services provided by other people. 28. Fiscal policy:decrease in govt purchases A) Shifts IS curve to left. B) Shifts LM curve to right. C) Shifts IS curve to right. D) Shifts LM curve to left. Show Answer Correct Answer: A) Shifts IS curve to left. 29. An increase in the money supply shifts the ..... curve to the right, and the aggregate demand curve ..... A) IS; shifts to the right. B) IS; does not shift. C) LM; shifts to the right. D) LM; does not shift. Show Answer Correct Answer: C) LM; shifts to the right. 30. Natural resources that can replenish themselves with proper management and care A) Voluntary. B) Renewable. C) Automatic. D) Non-renewable. Show Answer Correct Answer: B) Renewable. ← 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