This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 67 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 67 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The ..... is the smallest fraction of deposits that the Federal Reserve allows banks to hold. A) Bank Reserves. B) Reserve Ratio. C) Required Reserve Ratio. D) Reserve Requirements. Show Answer Correct Answer: C) Required Reserve Ratio. 2. When individuals are searching for greener pastures is considered what type of unemployment? A) Seasonal. B) Cyclical. C) Frictional. D) Structural. Show Answer Correct Answer: C) Frictional. 3. If 1 $ = Rs. 50 and now it becomes 1 $ = Rs 40 it will be called A) Depreciation. B) Appreciation. C) Devaluation. D) None of the above. Show Answer Correct Answer: B) Appreciation. 4. Consumption of all goods and services in the economy during the period of an accounting year is know as: A) Aggregate demand. B) Aggregate consumption. C) Aggregate supply. D) None of these. Show Answer Correct Answer: B) Aggregate consumption. 5. During a financial crisis, the Federal Reserve (the Fed) is the A) Supplier of Money. B) Fixer of the Economy. C) Lender of Last Resort. D) Money Taker. Show Answer Correct Answer: C) Lender of Last Resort. 6. It processes factor inputs into finished products. A) BANKS. B) HOUSEHOLDS. C) FIRMS. D) GOVERNMENT. E) INTERNATIONAL TRADE. Show Answer Correct Answer: C) FIRMS. 7. In conducting open market operations with a view to expansionary monetary policy A) The Reserve bank buys government securities from the financial sector. B) The financial sector buys government securities from the government. C) The Reserve bank increases interest rates. D) The Reserve bank sells government securities to the financial sector. Show Answer Correct Answer: A) The Reserve bank buys government securities from the financial sector. 8. When a third party hears arguments from two competing parties and renders a decision to be followed by the two parties A) Collective Bargaining. B) Arbitration. C) Mediation. D) Cooperative. Show Answer Correct Answer: B) Arbitration. 9. Trade policy to restrict imports A) Doesn't affect S or I, NX shift right but eq level unchanged, only appreciation of e. B) Doesn't affect S or I, NX shift left but eq level unchanged, only appreciation of e. C) Doesn't affect S or I, NX shift right but eq level unchanged, only depreciation of e. D) Affects S and I, NX shift right but eq level unchanged, only appreciation of e. Show Answer Correct Answer: A) Doesn't affect S or I, NX shift right but eq level unchanged, only appreciation of e. 10. Assume a country has a population of 1, 000. If 400 people are employed and 100 people are unemployed, what is the country's unemployment rate? A) 10%. B) 20%. C) 50%. D) 40%. E) 25%. Show Answer Correct Answer: B) 20%. 11. The Federal Reserve's target rate for the federal funds rate A) Is an extra policy tool for the central bank, in addition to and independent of the money supply. B) Commits the Fed to set a particular money supply so that it hits the announced target. C) Is a goal that is rarely achieved, because the Fed can determine only the money supply. D) Matters to banks that borrow and lend federal funds but does not influence aggregate demand. Show Answer Correct Answer: B) Commits the Fed to set a particular money supply so that it hits the announced target. 12. What is the name of your truly lecturer? A) Syarifah Rabiyah Al Adawiyah binti Syed Badrul Hisham. B) Syarifah Rabiyah Al Adawiah binti Syed Badrul Hisham. C) Syarifah Rabiah Al Adawiah binti Syed Badrul Hisham. D) Sharifah Rabiyah Al Adawiyah binti Syed Badrul Hisham. Show Answer Correct Answer: B) Syarifah Rabiyah Al Adawiah binti Syed Badrul Hisham. 13. Goods and services that are NOT produced in a country, but come from another country to be sold. A) Import. B) Export. C) Services. D) Goods. Show Answer Correct Answer: A) Import. 14. An economy is in a short run equilibrium at a level of output that is less than full employment output. If there were no fiscal or monetary policy interventions, which of the following changes in output and price level would occur in the long run? A) Increase/increase. B) No change/no change. C) Increase/decrease. D) Decrease/increase. E) Decrease/decrease. Show Answer Correct Answer: C) Increase/decrease. 15. Which of the following jobs would be least likely to be subjected to seasonal unemployed? A) Lifeguard. B) Department store Santa. C) Ski-lift operator. D) Taco Bell cashier. Show Answer Correct Answer: D) Taco Bell cashier. 16. How do you calculate the unemployment rate? A) Percent of people unemployed(# unemployed)/(# in labor force) x 100. B) Frictional + structural unemployment. C) % change in prices = (year 2-year 1)/(year 1) x 100. D) None of above. Show Answer Correct Answer: A) Percent of people unemployed(# unemployed)/(# in labor force) x 100. 17. Difference between sale of assets to foreigners and purchases of assets from foreigners is called ..... A) International trade. B) Exchange account. C) Current account. D) Financial account. Show Answer Correct Answer: D) Financial account. 18. What is the main reason that currency in the euro area has value? A) Because all currency is backed up with an equivalent value in gold. B) Because all currency is backed up with an equivalent value in silver. C) Because all currency is backed up with an equivalent value in government bonds. D) Because all currency is backed up with an equivalent value in government capital assets. E) Because the government declares currency to have value. Show Answer Correct Answer: E) Because the government declares currency to have value. 19. Which of the following is an advantage of the corporation as a form of business ownership: A) Less complex requirements. B) Separate owners and managers. C) Limited liability. D) High Taxes. Show Answer Correct Answer: C) Limited liability. 20. Real GDP divided by population size A) Nominal GDP. B) Real GDP. C) Real GDP per Capita. D) GDP. Show Answer Correct Answer: C) Real GDP per Capita. 21. A family buys a bag of groceries that costed $ 200 last month, but this month the cost is $ 300. Which is most likely the reason for this economic condition? A) Recession. B) Inflation. Show Answer Correct Answer: B) Inflation. 22. Which of the following best describes the concept of unlimited liability? A) The shareholders are responsible for repaying the business debts. B) The business owner(s) is/are not responsible for paying the business debts. C) Portions of a company's profit paid to shareholders. D) Personal assets of the business owner(s) can be used to repay the business debts. Show Answer Correct Answer: D) Personal assets of the business owner(s) can be used to repay the business debts. 23. If CPI goes from 100 to 300 and your salary goes from $ 100, 000 to $ 200, 000, what happened to your purchasing power? A) Increase. B) Decrease. C) No change. D) None of above. Show Answer Correct Answer: B) Decrease. 24. Most economists believe that a tradeoff between inflation and unemployment exists A) Only in the short run. B) Only in the long run. C) In both the short and long run. D) In neither the short nor long run. Show Answer Correct Answer: A) Only in the short run. 25. In order to increase the amount of money in the economy, what kind of interest rate should the central bank set? A) Make the interest rate lower. B) Make the interest rate higher. C) Make the interest rate fixed. D) All wrong. Show Answer Correct Answer: A) Make the interest rate lower. 26. The toyota is the microeconomics company A) True. B) False. Show Answer Correct Answer: A) True. 27. Jeff was replaced by a computer. He is experiencing what type of unemployment? A) Frictional. B) Seasonal. C) Cyclical. D) Structural. Show Answer Correct Answer: D) Structural. 28. The gasoline tax is an example of the ..... principle. A) Ability to pay. B) Free rider. C) Progressive tax. D) Benefit received. Show Answer Correct Answer: D) Benefit received. 29. Which one of the following is most likely to result in a rise in savings by households? A) Higher interest rates and higher income tax. B) Lower interest rates and higher income tax. C) Higher interest rates and lower income tax. D) Lower interest rates and lower income tax. Show Answer Correct Answer: C) Higher interest rates and lower income tax. 30. If aggregate output is greater than planned spending, then A) Unplanned inventory investment is zero. B) Unplanned inventory investment is negative. C) Actual investment equals planned investment. D) Unplanned inventory investment is positive. Show Answer Correct Answer: D) Unplanned inventory investment is positive. ← 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