This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 72 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 72 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If I produce cereal but, the government has to check to make sure I can put this product on the market, what economic system is this? A) Market. B) Command. C) Mixed. D) Traditional. Show Answer Correct Answer: C) Mixed. 2. Unemployment is one of the macroeconomis goal. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 3. Which is the Fed MOST likely to do in the event of a recession? A) Buy treasury bonds on the open market. B) Raise interest on reserves. C) Raise the discount rate. D) Sell treasury bonds on the open market. Show Answer Correct Answer: A) Buy treasury bonds on the open market. 4. The depreciation value of plant and equipment during the production of goods and services is called: A) Depreciation. B) Consumption. C) Invest. D) Intermediate goods. Show Answer Correct Answer: A) Depreciation. 5. Which of the following will cause the short-run aggregate supply curve to shift to the left? A) An increase in productivity. B) An increase in trade deficits. C) An increase in nominal wages. D) A decrease in the price level. E) An increase in the price level. Show Answer Correct Answer: C) An increase in nominal wages. 6. How could a nation's economy achieve a favorable balance of trade? A) By importing goods equal in value to its exports. B) By exporting more goods and services than it imports. Show Answer Correct Answer: B) By exporting more goods and services than it imports. 7. Match the following description with the factor that impacts growth in developing nations:Governments that spend money on improved healthcare and education can raise the standard of living. A) Geography and Natural Resources. B) History and Government. C) Investments in Human Capital. D) Cultural Beliefs and Religion. Show Answer Correct Answer: C) Investments in Human Capital. 8. A bank has capital of $ 200 and a leverage ratio of 5. If the value of the bank's assets declines by 10 percent, then its capital will be reduced to A) $ 180. B) $ 185. C) $ 150. D) $ 100. Show Answer Correct Answer: D) $ 100. 9. Deregulation means the ..... A) Reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. B) Increase of government power in a particular industry, usually enacted to create more competition within the industry. Show Answer Correct Answer: A) Reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. 10. The Keynesian money demand function expressed money demand as a function of (the) A) Income only. B) Income and nominal return on durable goods. C) Nominal return on durable goods and equities. D) Income and the interest rate. E) Nominal return on equities and the interest rate. Show Answer Correct Answer: D) Income and the interest rate. 11. How are the people that serve on the Board of Governors chosen? A) Nominated by the president and approved by the senate. B) They are the seven most recent Bank presidents. C) They are the Governors of the states with Federal Reserve District Banks. D) Nominated by the Chairman of the Board and approved by the president. Show Answer Correct Answer: A) Nominated by the president and approved by the senate. 12. The study of large-scale economic factors dealing with the economy of a nation, region, or of the world as a whole is called: A) Microeconomics. B) Macroeconomics. C) GDP. D) Supply & demand. Show Answer Correct Answer: B) Macroeconomics. 13. Structural unemployment is best described as unemployment arising from A) The elimination of jobs as a result of technological change. B) An increase in the number of workers searching for better-paying jobs. C) An increase in the number of jobs demanding unskilled labor. D) The temporary reduction of jobs during a downturn in the business cycle. E) The reduction in jobs due to seasonal changes in demand. Show Answer Correct Answer: A) The elimination of jobs as a result of technological change. 14. Consumption includes expenditure on: A) Durable goods and services. B) Non-durable goods and services. C) Both durable and non-durable expenditure. D) Tangible items only. Show Answer Correct Answer: C) Both durable and non-durable expenditure. 15. The discovery of new technologies promotes economic growth. A) Lie. B) True. Show Answer Correct Answer: B) True. 16. An increase in the aggregate demand for goods and services has a larger impact on output ..... and a larger impact on the price level ..... A) In the short run, also in the short run. B) In the long run, also in the long run. C) In the long run, in the short run. D) In the short run, in the long run. Show Answer Correct Answer: D) In the short run, in the long run. 17. These are government programs intended to protect families against economic hardship. A) Social Insurance. B) Stabilization Policy. C) Contractionary Fiscal Policy. D) None of above. Show Answer Correct Answer: A) Social Insurance. 18. Contractionary or Expansionary?As part of the CREATE law, corporate income tax cuts are mandated. What type of macroeconomic policy is being described in this case? A) Expansionary. B) Contractionary. Show Answer Correct Answer: A) Expansionary. 19. Which is true, based on the Law of Demand? A) If price is low, people will want less. B) If price is low, people will want the same amount. C) If price is high, people will want less. D) If price is high, people will want more. Show Answer Correct Answer: C) If price is high, people will want less. 20. Monetary policy is defined as the A) Buying and selling of currency in foreign exchange markets. B) Taxing and spending decisions of the United States Government. C) Interaction of buyers and sellers in the market place. D) Decisions of the Federal Reserve System that determine the money supply. Show Answer Correct Answer: D) Decisions of the Federal Reserve System that determine the money supply. 21. At the farmer's market all the booths sold red tomatoes. What type of market structure does this represent? A) Oligopoly. B) Monolistic competition. C) Pure competition. D) Monopoly. Show Answer Correct Answer: C) Pure competition. 22. The "sticky wage" theory states that ..... A) Wages may stay at above-equilibrium levels for an extended period of time, thus keeping unemployment low. B) Wages may stay at above-equilibrium levels for an extended period of time, thus keeping unemployment high. C) Wages may stay at below-equilibrium levels for an extended period of time, thus keeping unemployment low. D) Wages may stay at below-equilibrium levels for an extended period of time, thus keeping unemployment high. E) Wages may stay at equilibrium levels for an extended period of time, thus keeping unemployment low. Show Answer Correct Answer: B) Wages may stay at above-equilibrium levels for an extended period of time, thus keeping unemployment high. 23. Which of the following measures the change in value of a basket of goods and services purchased by the average urban consumer? A) Consumer Price Index. B) Producer Price Index. C) Connoisseur. D) Purchaser Price Index. Show Answer Correct Answer: A) Consumer Price Index. 24. Which of the economic systems listed below involves government ownership of the factors of production? A) Command Economy. B) Market Economy. C) Traditional Economy. D) All of the Above. Show Answer Correct Answer: A) Command Economy. 25. A shoemaker increases its bulk purchases of leather to keep up with demand. Is this included in GDP? A) Yes-Government Spending. B) No-used item. C) No-Intermediate Goods. D) Yes-Investment. Show Answer Correct Answer: C) No-Intermediate Goods. 26. Imagine a country where the pricing of goods and services, as well as economic decisions, are guided by the interactions of its individual citizens and businesses. What type of economic system is this? A) Market Economy. B) Traditional Economy. C) Mixed Economy. D) Command Economy. Show Answer Correct Answer: A) Market Economy. 27. The following is not a subject matter of macroeconomics A) National income accounting. B) Law of demand and supply. C) Business cycle. D) Inflation. E) Law of demand and supply. Show Answer Correct Answer: B) Law of demand and supply. 28. If US exports = 100$ and US imports = 200$ , then Net Exports = A) 300$. B) 100$. C) -300$. D) -100$. Show Answer Correct Answer: D) -100$. 29. A monopoly based on the absence of other sellers in a certain location is called A) A geographic monopoly. B) A natural monopoly. C) An oligopoly. D) A locational monopoly. Show Answer Correct Answer: A) A geographic monopoly. 30. Depreciation means (i)(ii)r(iii)(iv) A) Loss of fixed assets in an earthquake. B) Loss of fixed assets over time. C) Closure of the plant due to lockout. D) Destruction of a plant in fire accident. Show Answer Correct Answer: B) Loss of fixed assets over time. ← 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