This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 64 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 64 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In a competitive economy, which firms will have the most access to the factors of production (productive resources)? A) The firms that are most successful in meeting consumer demand. B) The firms that are least successful in meeting consumer demand. C) The firms that have the most production experience. D) The firms that offer the greatest variety of goods/services. Show Answer Correct Answer: A) The firms that are most successful in meeting consumer demand. 2. When high inflation is combined with low economic growth, this is called: A) Inflation. B) Stagflation. C) Deflation. D) Noflation. Show Answer Correct Answer: B) Stagflation. 3. All of the following are objectives of macroeconomic management except: A) Economic growth. B) External stability. C) Full employment. D) High inflation. Show Answer Correct Answer: D) High inflation. 4. Which of the following statements is the most appropriate description of grossdomestic product (GDP)? A) The total income earned by all households, firms, and the governmentwhose value can be verified. B) The total amount spent on all final goods and services produced within the economy during a given period. C) The total market value of resalable and final goods and services producedwithin the economy during a given period. D) None of above. Show Answer Correct Answer: B) The total amount spent on all final goods and services produced within the economy during a given period. 5. A period of expansion and contraction of aggregate economic activity measured by real GDP is called a A) Growth indicator. B) Business cycle. C) Lag. D) Real GDP. Show Answer Correct Answer: B) Business cycle. 6. Why does expansionary monetary policy causes interest rates to drop? A) Expansionary monetary policy causes interest rates to drop because it increases the money supply and competition among lenders. B) Expansionary monetary policy causes interest rates to drop because it leads to higher demand for loans and higher interest rates. C) Expansionary monetary policy causes interest rates to drop because it reduces inflation and increases the value of money. D) Expansionary monetary policy causes interest rates to drop because it decreases the money supply and competition among lenders. Show Answer Correct Answer: A) Expansionary monetary policy causes interest rates to drop because it increases the money supply and competition among lenders. 7. If government spending and taxes decrease by the same amount A) The IS curve shifts leftward. B) The IS curve shifts rightward. C) The LM curve shifts downward. D) The IS curve does not shift. Show Answer Correct Answer: A) The IS curve shifts leftward. 8. Consumption expenditure is one of the factors affecting ..... A) AS CURVE. B) AD CURVE. Show Answer Correct Answer: B) AD CURVE. 9. Shows the relationship between the aggregate price level and the quantity of aggregate output demanded by households, business, the government, and the rest of the world A) Aggregate Supply. B) Aggregate Demand. C) CPI. D) GDP. Show Answer Correct Answer: B) Aggregate Demand. 10. In a market system, when resources are shifted from products that don't sell, to products that people will buy, which basic economic question is being answered? A) What to produce?. B) How to produce it?. C) Who gets it?. D) None of above. Show Answer Correct Answer: A) What to produce?. 11. Which of the following is not a flow variable? A) Income. B) Supply of money in a country. C) Leakage of water from the overhead tank. D) Capital formation. Show Answer Correct Answer: B) Supply of money in a country. 12. The goal of monetary policy is to A) Sell bonds. B) Reduce unemployment. C) Seek price stability. D) Red and blue. Show Answer Correct Answer: C) Seek price stability. 13. Understanding financial policy is part of what is studied under microeconomics. A) Tama. B) Mali. Show Answer Correct Answer: B) Mali. 14. Which of the following is not a component of GDP in the expenditures approach? A) Government purchases. B) Workers' wages and other compensation. C) Gross private domestic investment. D) The difference between exports and imports. Show Answer Correct Answer: B) Workers' wages and other compensation. 15. In the grocery store there are more than 20 different types of bread to choose from (Sara Lee, Wonder Bread, etc.) Each brand a little different. What type of market structure does this represent? A) Pure competition. B) Monolistic competition. C) Oligopoly. D) Monopoly. Show Answer Correct Answer: B) Monolistic competition. 16. The economy must operate at maximum capacity refers to A) Economic growth. B) Full employment. C) Equitable distribution of income. D) Price stability. Show Answer Correct Answer: B) Full employment. 17. Which of the following would cause the short run aggregate supply curve to shift to the right A) An increase in the natural rate of unemployment. B) An increase in the interest rate. C) An increase in the wage rate. D) A decrease in the expected price level. E) A decrease in the capital stock. Show Answer Correct Answer: D) A decrease in the expected price level. 18. An airline buying a plane belong in which part of the GDP formula?GDP = C+I+G+(X-M) A) Government Expenditures (Gov't Spending). B) Consumption Expenditures (Consumer Spending). C) Investment Expenditures (Business Spending). D) Net Imports (Imports-Exports). Show Answer Correct Answer: C) Investment Expenditures (Business Spending). 19. In the simple circular flow diagram, businesses: A) Supply products and demand resources. B) Supply both products and resources. C) Supply resources and demand products. D) Demand both products and resources. Show Answer Correct Answer: A) Supply products and demand resources. 20. Which method of credit control aims control the cost and availability of credit? A) Quantitative methods. B) Qualitative methods. Show Answer Correct Answer: A) Quantitative methods. 21. GDP, unemployment and the national debt are all? A) Signs the economy is in contraction. B) Signs the economy is peaking. C) Economic indicators used to determine the state of the economy. D) Elements of monetary policy. Show Answer Correct Answer: C) Economic indicators used to determine the state of the economy. 22. Which term is defined as the difference between the value of a nation's imports and the value of its exports? A) Gross domestic product. B) Per capital income. C) Consumer price index. D) Balance of trade. Show Answer Correct Answer: D) Balance of trade. 23. Knowledge, skills of workers, education, training, and experience A) Physical capital. B) Human capital. C) Natural resources. D) Productivity. Show Answer Correct Answer: B) Human capital. 24. Inflation does not in itself reduce people's real purchasing power. A) False. B) True. Show Answer Correct Answer: B) True. 25. In the short run, a decrease in the Money Supply pushes interest rates ....., while in the long run interest rates ..... A) Down, don't change. B) Down, increase. C) Up, don't change. D) Up, increase. Show Answer Correct Answer: C) Up, don't change. 26. A direct or positive relationship exists between a country's: A) Productivity and its standard of living. B) Government spending and its productivity. C) Total population and its per-capita income. D) Prices for its goods and services and its exports. Show Answer Correct Answer: A) Productivity and its standard of living. 27. A country's government runs a budget deficit when which of the following occurs in a given year? A) The amount of new loans to developing nations exceeds the amount of loans paid off by developing nations. B) Government spending exceeds tax revenues. C) The debt owed to foreigners exceeds the debt owed to the country's citizens. D) The amount borrowed exceeds the interest payment on the national debt. E) Interest payments on the national debt exceed spending on goods and services. Show Answer Correct Answer: B) Government spending exceeds tax revenues. 28. Hich of the following is the most realistic assumption when drawing a PP curve? A) There is no trade. B) Resources are not equally suited to producing both goods. C) The level of technology is fixed. D) Resources are fixed in quality and quantity. Show Answer Correct Answer: B) Resources are not equally suited to producing both goods. 29. Eq unemployment rate A) $\frac{L}{U}=\frac{s}{s+f}$. B) $\frac{U}{L}=\frac{s+f}{s}$. C) $\frac{U}{L}=\frac{s}{s+f}$. D) $\frac{L}{U}=\frac{s+f}{s}$. Show Answer Correct Answer: C) $\frac{U}{L}=\frac{s}{s+f}$. 30. All of these are ways in which the Federal Reserve System can ..... A) Control the stock market. B) Regulate the money supply. C) Decrease consumer spending. D) Challenge Presidential power. Show Answer Correct Answer: B) Regulate the money supply. ← 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