This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 65 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 65 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The term "Mixed Economy" refers to an economy A) Having significant elements of both decentralized markets and centralized planning and control. B) Comprised of both product and resource markets. C) Which engaged in both domestic and international trade. D) Which functions primarily on the basic of custom and tradition. Show Answer Correct Answer: A) Having significant elements of both decentralized markets and centralized planning and control. 2. "Opportunity Cost" as an economic concept is best understood as the value of the next best alternative that you could have chosen. A) True. B) False. Show Answer Correct Answer: A) True. 3. When individuals lose jobs due to a decline in the economy (aggregate demand), often during an economic recession. A) Cyclical Unemployment. B) Frictional Unemployment. C) Seasonal Unemployment. D) Structural Unemployment. Show Answer Correct Answer: A) Cyclical Unemployment. 4. Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ..... and real GDP to be ..... A) Lower; higher. B) Higher; lower. C) Higher; higher. D) Lower; lower. Show Answer Correct Answer: C) Higher; higher. 5. Is this counted in the GDP of the US?A farmer's purchase of a new tractor. A) No. B) Yes. Show Answer Correct Answer: B) Yes. 6. What term refers to the federal government's budget when the tax revenue received for a given fiscal year is less than the amount of spending done by the government during the year? A) A federal deficit. B) A negative balance of payments. C) A federal budget surplus. D) A national debt. Show Answer Correct Answer: A) A federal deficit. 7. Reason for the circular flow of income is: A) Government intervention. B) Production of goods and services. C) Mutual interdependence of producer and household sector. D) Invention of money. Show Answer Correct Answer: C) Mutual interdependence of producer and household sector. 8. Of the three major economic questions, which of the following is the best example of a "How?" question? A) Should we build log homes or build factories from bricks?. B) Should we spend more on health care?. C) Should we collect tolls on turnpikes using human toll collectors or mechanized toll machines?. D) Should we produce more heavy fleece coats?. Show Answer Correct Answer: C) Should we collect tolls on turnpikes using human toll collectors or mechanized toll machines?. 9. What would be the result if Great Britain had a comparative advantage over France in the production of cars? A) There are no gains from specialization and trade in cars between Britain and France. B) France will continue to produce cars at the same rate. C) The opportunity cost of producing cars in Britain is higher than in France. D) The opportunity cost of producing cars in Britain is lower than in France. Show Answer Correct Answer: D) The opportunity cost of producing cars in Britain is lower than in France. 10. Absolute purchasing power parity refers to the relationship between the inflation rates of two countries A) False. B) True. Show Answer Correct Answer: A) False. 11. Which of the following is NOT part of the product market? A) Workers. B) Chair. C) Chicken nuggets. D) Movie. Show Answer Correct Answer: A) Workers. 12. The value of which of the following would be included in the United States gross domestic product? A) Time spent volunteering at a local hospital. B) A United States savings bond received as a birthday gift. C) A movie ticket purchased at a local theater. D) A new handbag made in Italy by a United States firm. E) A used car sold at the same price paid for it. Show Answer Correct Answer: C) A movie ticket purchased at a local theater. 13. The two primary goals (sometimes referred to as the dual mandate) of the Federal Reserve Bank are A) Maximum employment and stable prices. B) Low interest rates and low inflation. C) Maximum GDP and reasonable prices. D) Zero inflation and full employment. Show Answer Correct Answer: A) Maximum employment and stable prices. 14. The national debt of the United States is the A) Accumulated government spending, less the interest paid on bonds. B) Accumulation of all past government deficits. C) Difference between government tax revenues and government spending during a fiscal year. D) Money owed to the Federal Reserve for reimbursement of domestic bondholders. E) Annual amount borrowed by local, state, and federal governments to provide public goods to all citizens. Show Answer Correct Answer: B) Accumulation of all past government deficits. 15. Which is NOT one of America's main economic goals? A) Promote Economic Growth. B) Maintain Price Stability. C) Create High Employment. D) Maximize Global Trade. Show Answer Correct Answer: D) Maximize Global Trade. 16. One indicator that is often used to measure economic growth is A) Price levels. B) GNP (Gross National Product). C) GDP per capita. D) GDP (Gross Domestic Product). Show Answer Correct Answer: D) GDP (Gross Domestic Product). 17. The greater the decline rate, the more stimulated an economy will be, consumption from that economy will increase higher compared to an economy with a smaller decline rate, which is a term for..... A) The Option of Negative Real Interest Rates. B) Money ILlusion in The Other Side of The Coin. C) The Layman's View and the Classical Response. D) Lordship. Show Answer Correct Answer: A) The Option of Negative Real Interest Rates. 18. When prices are high, consumers are less likely to buy a product. A) Law of Supply. B) Law of Demand. C) Law of Supply and Demand. D) Market Price. Show Answer Correct Answer: B) Law of Demand. 19. Which of the following is NOT a direct tool of the Fed Reserve? A) Setting the Discount Rate. B) Setting the Federal Funds Rate. C) Open Market Operations. D) Setting the Reserve Requirement. Show Answer Correct Answer: B) Setting the Federal Funds Rate. 20. When people can't find a job because of a lack of demand for their skills or type of labor, this is called? A) Frictional Unemployment. B) Structural Unemployment. C) Cyclical Unemployment. D) None of above. Show Answer Correct Answer: B) Structural Unemployment. 21. Money acts as the basis of credit system. This is a ..... function of money. A) Contingent. B) Primary. C) Miscellaneous. D) Secondary. Show Answer Correct Answer: A) Contingent. 22. All of the things necessary for production are known as: A) Entrepreneurship. B) Outputs. C) Resources. D) Production. Show Answer Correct Answer: C) Resources. 23. $\Delta k=sf\left(k\right)-\left(\delta+n+g\right)k$ A) Equation of motion for k with population growth and technological progress. B) False. Show Answer Correct Answer: A) Equation of motion for k with population growth and technological progress. 24. Choose the best suggestion for building and maintaining a good credit score A) Have money in savings and protected against identity theft. B) Keep debt low and pay bills on time. C) Make safe investments and set clear financial goals. D) Comparison shop and follow a budget. Show Answer Correct Answer: B) Keep debt low and pay bills on time. 25. Sam and Sadie charge people to park on their lawn while attending a nearby craft fair. At the current price of $ 10, eight people park on their lawn. If they raise the price to $ 15, they know that only six people will want to park on their lawn. Whether they have eight or six cars parked on their lawn does not affect their costs. From this information it follows that A) They should leave the price at $ 10. B) It does not matter if they charge $ 10 or $ 15. C) They would do better charging $ 15 and $ 10. D) They should raise the price even more. E) They should lower the price even more. Show Answer Correct Answer: C) They would do better charging $ 15 and $ 10. 26. Which item would be considered a "soft commodity" ? A) Sugar. B) Diamonds. C) Limestone. D) Coal. Show Answer Correct Answer: A) Sugar. 27. Which of the following is NOT one of the 3 tools of the fed. A) Changing the tax rate. B) Open market operations. C) Changing the reserve requirement. D) Changing the discount rate. Show Answer Correct Answer: A) Changing the tax rate. 28. Statutory reserves are A) Interest rates given by commercial banks. B) Investment savings in commercial banks. C) Money saved in commercial banks. D) Compulsory savings made by commercial banks in the central bank. Show Answer Correct Answer: D) Compulsory savings made by commercial banks in the central bank. 29. Maria and Sara borrow $ 15, 000 from the same bank to buy the same kind of car. Maria's credit score is 732 and Sara's credit score is 588. Who is likely to pay the lower finance charge? A) Sara. B) They will pay the same because they are buying the same kind of car. C) They will pay the same because they are borrowing from the same bank. D) Maria. Show Answer Correct Answer: D) Maria. 30. Something of value used to secure a loan A) Unsecured loan. B) Interest. C) Finance charge. D) Collateral. Show Answer Correct Answer: D) Collateral. ← 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