This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 70 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 70 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. These are set of assets in the economy used to buy goods and services. A) Assets. B) Cash. C) Equity. D) Money. Show Answer Correct Answer: D) Money. 2. What impact would you expect high levels of immigration to have on consumption in the UK? A) Positive. B) Negative. C) Neutral. D) None of above. Show Answer Correct Answer: A) Positive. 3. What is the velocity of money? A) A measurement of the rate at which money is exchanged in an economy. B) Where money keeps changing. C) The number of times that money stayed in one entity. D) It's the rate at which consumers and businesses in an economy keep money for themselves. Show Answer Correct Answer: A) A measurement of the rate at which money is exchanged in an economy. 4. Monetary policy control inflation and deflation by controlling ..... A) Aggregate demand. B) Aggregate supply. C) Money supply. D) Tax. Show Answer Correct Answer: C) Money supply. 5. The increased costs of transactions caused by infaltion. A) Disinflation. B) Shoe-Leather Cost. C) Unit-of-Account Cost. D) Menu Cost. Show Answer Correct Answer: B) Shoe-Leather Cost. 6. Which policy helps the Federal Reserve to regulate the economy? A) Economic policy. B) Monetary policy. Show Answer Correct Answer: B) Monetary policy. 7. Example of a Liability: A) Boat. B) Snowmobile Loan. C) Insurance Payment. D) Electric Bill. Show Answer Correct Answer: B) Snowmobile Loan. 8. Which of the following is a supply-side policy aimed at increasing competition? A) Implementing price controls. B) Increasing interest rates. C) Increasing government spending. D) Deregulating industries. Show Answer Correct Answer: D) Deregulating industries. 9. What is one advantage of capitalism? A) Discourages economic growth. B) Leads to equal distribution of wealth. C) Promotes government control over resources. D) Promotes innovation and competition. Show Answer Correct Answer: D) Promotes innovation and competition. 10. The lowest legal price that can be paid for a product: A) Price Ceiling. B) Price Floor. C) Price. D) Surplus. Show Answer Correct Answer: B) Price Floor. 11. The Federal Open Market Committee A) Combines the Board of Governors and the 12 Reserve Banks. B) Contains approximately 8.039 commercial banks. C) Ensures safety deposits. D) None of above. Show Answer Correct Answer: A) Combines the Board of Governors and the 12 Reserve Banks. 12. In economics, the term 'investment' refers to: A) Purchasing shares and fixed term securities. B) Spending on physical products that are intended to be used as inputs in production process. C) Purchasing a piece of existing real estate. D) Purchasing goods or services. Show Answer Correct Answer: B) Spending on physical products that are intended to be used as inputs in production process. 13. Disposable income can be written as ..... A) Y = C + I. B) Y = C + I + G. C) Y-T. D) C = S + I. Show Answer Correct Answer: C) Y-T. 14. Work that requires minimal specialized skill and training A) Derived demand. B) Productivity of labor. C) Equilibrium wage. D) Unskilled labor. E) Semi-skilled labor. Show Answer Correct Answer: E) Semi-skilled labor. 15. When the short-term interest rate ....., the opportunity cost of holding money ....., and the quantity of money individuals want to hold ..... A) Rises; rises; rises. B) Rises; falls; rises. C) Rises; falls; falls. D) Falls; falls; rises. E) Falls; falls; falls. Show Answer Correct Answer: D) Falls; falls; rises. 16. Which of the following policies is most likely to increase potential output in the long run? A) Taxes on business investment. B) Weakening protections on intellectual property. C) Taxes on the gains from the sale of assets. D) Policies that encourage more household spending. E) Policies that encourage more saving for retirement. Show Answer Correct Answer: E) Policies that encourage more saving for retirement. 17. What is a main goal of the Federal Reserve? A) To control inflation. B) To allow price levels for goods and services to rise by 10 percent. C) To allow price levels for goods and services to rise by 15 percent. D) To allow price levels for goods and services to rise by 20 percent. Show Answer Correct Answer: A) To control inflation. 18. Monetary policy, or changing the money supply to influence the economy, is controlled by who? A) Congress and the President. B) The Federal Reserve. Show Answer Correct Answer: B) The Federal Reserve. 19. Which one of the following is not included as part of the manufactured capital stock of Europe? A) Computer software. B) Stocks traded on the stock market. C) Factories. D) Consumer durable goods. E) Inventories. Show Answer Correct Answer: B) Stocks traded on the stock market. 20. Governments actions and policies that restrict international trade, with the intent of protecting local business and jobs from foreign companies, also known as Free Trade. A) True. B) False. Show Answer Correct Answer: B) False. 21. Labour force participation has been rising over time in many countries. What is the most likely reasons for this trend? A) Unemployment has fallen. B) More females have entered employment. C) The working population has increased. D) More people are retiring earlier. Show Answer Correct Answer: B) More females have entered employment. 22. Which of these people would be considered a part of the Civilian Labor Force A) A Military Officer. B) A Bus Driver for a school. C) A inmate at a prison. D) A patient at a mental Institution. Show Answer Correct Answer: B) A Bus Driver for a school. 23. A worker who is unemployed due to fluctuations in the business cycle is considered ..... A) Frictionally unemployed. B) Structurally unemployed. C) Cyclically unemployed. D) A discouraged worker. Show Answer Correct Answer: C) Cyclically unemployed. 24. Scarcity of resource means ..... A) Resources are more. B) Resources are plenty. C) Resources are not available to meet the requirements. D) None of above. Show Answer Correct Answer: C) Resources are not available to meet the requirements. 25. This type of money does not have any intrinsic value and does not represent an asset in a vault. A) Commodity money. B) Representative money. C) Fiat money. D) None of above. Show Answer Correct Answer: C) Fiat money. 26. What is a large pool of money that several people put together, and that is usually invested in stocks and bonds and managed by a financial expert? A) Bond. B) Mutual fund. C) Stock. D) Bitcoin. Show Answer Correct Answer: B) Mutual fund. 27. A herd of cattle is an example of ..... A) Land. B) Labor. C) Entrepreneur. D) Capital. Show Answer Correct Answer: A) Land. 28. What is aggregate supply? A) The total amount of goods and services producers are willing and able to supply in an economy at a given price level and period of time, excluding imports. B) The total amount of goods and services producers are willing and able to supply in an economy at a given price level and point in time. C) Total amount of goods and services producers are willing and able to supply in an economy at a given price level and period of time. D) The total amount of goods and services consumers are willing and able to purchase in an economy at a given price level and period of time. Show Answer Correct Answer: C) Total amount of goods and services producers are willing and able to supply in an economy at a given price level and period of time. 29. The study of the economy as a whole ..... the "big picture" ..... is called A) Macronutrition. B) Mercantilism. C) Microeconomics. D) Macroeconomics. Show Answer Correct Answer: D) Macroeconomics. 30. Which of the following is a method to measure the National Income involves double counting? A) Product method. B) Value Added Method. C) Expenditure method. D) Income method. Show Answer Correct Answer: B) Value Added Method. ← 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