This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 71 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 71 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What Determines a Nation's Total Output? A) The economy's ability to produce goods and services depend on its prices of inputs or factors of production and technology to turn inputs into output. B) The economy's ability to produce goods and services depend on its quantity of inputs or factors of production and technology to turn inputs into output. C) The economy's ability to produce goods and services depend on the demand of consumers. D) The economy's ability to produce goods and services depend on Capital resources and human resources. Show Answer Correct Answer: B) The economy's ability to produce goods and services depend on its quantity of inputs or factors of production and technology to turn inputs into output. 2. What event caused many scholars to change their ideas about Smith's theory? A) September 11, 2001. B) The American Revolution. C) The Great Depression. D) The Russian Revolution. E) The Vietnam War. Show Answer Correct Answer: C) The Great Depression. 3. The average price of goods consumed by consumers is measured by the published Consumer Price Index, or CPI..... A) Every Quarter. B) Every year. C) Every month. D) Every semester. Show Answer Correct Answer: C) Every month. 4. Alice, who has left her job in New York, is moving to Atlanta and looking for a job. In terms of employment status, Alice can most accurately be described as A) Involuntarily unemployed. B) Cyclically unemployed. C) Seasonally unemployed. D) Frictionally unemployed. E) Not in the labor force. Show Answer Correct Answer: D) Frictionally unemployed. 5. Why might manufacturing workers have higher wage rates than agricultural workers? A) Manufacturing workers are in greater supply. B) Manufacturing workers face fewer health and safety risks. C) Manufacturing workers have better working conditions. D) Manufacturing workers use more productive equipment. Show Answer Correct Answer: D) Manufacturing workers use more productive equipment. 6. The government of Tatooine had a balanced budget last year. However, an unanticipated recession triggered by the wanton destruction of Jabba's Palace leads to a decrease in tax revenues, even though government spending and transfer payments did not change.What happens to the budget balance and national debt in Tatooine as a result of the decrease in tax revenues? A) There is a budget surplus; national debt will decrease. B) There is a budget deficit; no impact on national debt. C) There is a budget deficit; the debt will increase. D) There is a balanced budget; national debt will increase. E) There is a budget surplus; no impact on national debt. Show Answer Correct Answer: C) There is a budget deficit; the debt will increase. 7. Melanie owns a bakery and has just purchased new powerful mixing machines that will increase her daily output of baked goods. This is an example of an investment in: A) Financial capital. B) Human capital. C) Technology. D) Physical capital. E) Environmental capital. Show Answer Correct Answer: D) Physical capital. 8. What act by the Federal Reserve will cause the money supply to decrease and inflation to fall? A) Sell bonds. B) Raise the discount rate. C) Buy bonds. D) Print more money. Show Answer Correct Answer: A) Sell bonds. 9. Japanese embassy in India is a part of domestic territory of A) India. B) Japan. C) International area. D) None of these. Show Answer Correct Answer: B) Japan. 10. Macroeconomics is concerned with the study of ..... A) How Malaysian respond to oil price. B) Production methods and costs. C) The effects of reduction of wages on agricultural output. D) The general price level. Show Answer Correct Answer: D) The general price level. 11. Under which of the following conditions would you prefer to be the borrower? A) The nominal rate of interest is 20 percent and the inflation rate is 25 percent. B) The nominal rate of interest is 12 percent and the inflation rate is 9 percent. C) The nominal rate of interest is 5 percent and the inflation rate is 1 percent. D) The nominal rate of interest is 15 percent and the inflation rate is 14 percent. Show Answer Correct Answer: A) The nominal rate of interest is 20 percent and the inflation rate is 25 percent. 12. Choose the Best Answer.Which country has the most unequal economy in terms of income/wealth? A) Sweden. B) France. C) U.S. D) Brazil. Show Answer Correct Answer: D) Brazil. 13. TRUE or FALSE:An example of an intermediate good would be the leather used to make shoes. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 14. Which of the following is present in both markets? A) Money. B) Land. C) Labor. D) Capital. Show Answer Correct Answer: A) Money. 15. Any effort a human devotes to a task for pay A) Land. B) Capital. C) Labor. D) Entrepreneurship. Show Answer Correct Answer: C) Labor. 16. How does the federal government borrow money? A) Asks members of parliament to fork over some of their salaries. B) Raises taxes. C) Asks people on welfare for food stamps. D) Sells treasury bonds. Show Answer Correct Answer: D) Sells treasury bonds. 17. Absolute advantage A) TRICE-Technology (can both increase or decrease the curve), Related Prices (substitutes/compliments), Input prices, Competition, Expectations. B) A property of an efficient market whereby all goods and services are optimally distributed among buyers in an economy. C) The ability to produce more of a given product using a given amount of resources. D) A model that shows the flow of goods and services and the interaction among households, businesses, and banks. Show Answer Correct Answer: C) The ability to produce more of a given product using a given amount of resources. 18. The goal of government welfare programs is to A) Maintain a poverty threshold that matches the median income. B) Eliminate the dependence of people on the welfare system. C) Eliminate the income gap between the richest Americans and the poorest. D) Raise the standard of living of certain less-fortunate members of society. Show Answer Correct Answer: D) Raise the standard of living of certain less-fortunate members of society. 19. According to the ....., an increase in expected future inflation drives up the nominal interest rate by the same number of percentage points, leaving the expected real interest rate unchanged. A) Fisher Effect. B) Farmer Effect. C) Tech Effect. D) Business Effect. Show Answer Correct Answer: A) Fisher Effect. 20. Identifying the least-cost method of producing textbooks A) Macroeconomics. B) Microeconomic. Show Answer Correct Answer: B) Microeconomic. 21. Fiscal expansionary policy (increase in govt purchases or decrease in taxes) under floating exchange rates A) Shifts IS* leftraises exchange rateno effect on income. B) Shifts IS* rightraises exchange rateno effect on income. C) Shifts IS* leftraises exchange rateraises income. D) Shifts IS* right raises exchange rateraises income. Show Answer Correct Answer: B) Shifts IS* rightraises exchange rateno effect on income. 22. The labor force consists of A) Everyone who has a job. B) All employed workers minus all unemployed workers. C) All employed workers minus all military workers. D) All employed and unemployed civilian workers. Show Answer Correct Answer: D) All employed and unemployed civilian workers. 23. What is the formula for GDP? A) C + I + G + (population). B) C + I + G + (X-M). C) C + I + G + (M-X). D) C + I + G / (X-M). Show Answer Correct Answer: B) C + I + G + (X-M). 24. Long-run economic growth is: A) Higher in countries when it has a weak rule of law and excessive government intervention. B) Lower in countries when it has a strong government and independent judiciary. C) Lower in countries when the courts enforce property rights and a government that protects its citizens. D) Higher in countries when it has a strong rule of law and political stability. E) Higher in countries when it has a strong rule of law and a corrupt judiciary. Show Answer Correct Answer: D) Higher in countries when it has a strong rule of law and political stability. 25. Which of the following is a step that the central bank will take to increase the overall availability of credit? A) Raise the reverse repo rate. B) Sell the securities in the market. C) Buy securities from the market. D) Raise the repo rate. Show Answer Correct Answer: C) Buy securities from the market. 26. A ..... is an increase in the value of a currency that is set under a fixed exchange rate regime. A) Revaluation. B) Devaluation. C) Valuation. D) None of above. Show Answer Correct Answer: A) Revaluation. 27. Which of the following is a component of Aggregate Demand? A) Wage rates. B) Inflation. C) Government Spending. D) Unemployment. Show Answer Correct Answer: C) Government Spending. 28. The most likely reason for a government to deliberately have a budget deficit is in order to A) Stimulate the level of AD. B) Boost the level of net exports. C) To redistribute income and wealth. D) Reduce the general level of prices. Show Answer Correct Answer: A) Stimulate the level of AD. 29. Which of the following is a benefit of implementing supply-side policies? A) Policies take a long time to implement. B) Very costly production. C) People are resistant to change. D) Increases employment rate. Show Answer Correct Answer: D) Increases employment rate. 30. The following data about a hypothetical economy are in billions of dollars.Personal Consumption Expenditures $ 4500Gross Private Domestic Investment 150Government Purchases 950Exports 65Imports 85Refer to the above data. GDP in this economy is: A) $ 6, 080 billion. B) $ 6, 400 billion. C) $ 6, 380 billion. D) $ 6, 230 billion. Show Answer Correct Answer: D) $ 6, 230 billion. ← 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