This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 73 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 73 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. GDP, growth, business cycles, and unemployment are all central topics in: A) Microeconomics. B) Macroeconomics. C) Utility theory. D) Wage determination. Show Answer Correct Answer: B) Macroeconomics. 2. Refusal to trade with another country because of their policies is called? A) Tariff. B) Embargo. C) Trade Agreement. D) None of the above. Show Answer Correct Answer: B) Embargo. 3. What was Adam Smith known as? A) Creator of GDP. B) Father of modern economics. C) Creator of CPI. D) Karl Marx's little brother. Show Answer Correct Answer: B) Father of modern economics. 4. Government involvement in a market economy is. A) High. B) Low. Show Answer Correct Answer: B) Low. 5. Explain the tools used in monetary policy. A) Open market operations, reserve requirements, and the discount rate. B) Stock market, bond market, and foreign exchange market. C) Tax policy, government spending, and exchange rates. D) Fiscal policy, interest rates, and inflation. Show Answer Correct Answer: A) Open market operations, reserve requirements, and the discount rate. 6. If an economy is at its Natural Rate of Unemployment ..... A) Only Cyclical Unemployment would be present. B) There would be no frictional unemployment. C) Only frictional and structural unemployment would be present. D) Everyone is working Everyone is working. Show Answer Correct Answer: C) Only frictional and structural unemployment would be present. 7. The money demand curve is downward sloping because A) The transaction demand for money decreases as interest rates fall. B) People hold less money as the opportunity cost of holding money rises. C) Money is less liquid as interest rates rise, so people are able to hold less of it. D) Banks are more willing to create money when interest rates fall. E) Withhigherincomes, peoplearewillingto hold smaller percentages of their money. Show Answer Correct Answer: B) People hold less money as the opportunity cost of holding money rises. 8. Which of the following best defines a recession? A) A period of significant economic growth characterized by an increase in GDP and decreasing unemployment rates. B) The sustained increase in the general price level of goods and services over time. C) The use of government spending and taxation to influence the overall economy. D) A significant decline in economic activity characterized by less spending, unemployment. Show Answer Correct Answer: D) A significant decline in economic activity characterized by less spending, unemployment. 9. If the Price of the Market Basket in 2009 is $ 40 and the Price of the Market Basket in the base year is $ 80, what is the CPI for 2009? A) .5. B) 50. C) 120. D) 200. Show Answer Correct Answer: B) 50. 10. This includes 80, 000 items that are sorted into 200 categories and 8 major groups (housing/food/energy) and helps determine inflation. A) CPI Market Basket. B) Inflation calculator. C) Bureau of Labor and Statistics. D) Interest Rate. Show Answer Correct Answer: A) CPI Market Basket. 11. The Rp. 100, 000 in our wallet is..... A) Commodity money. B) Backed by gold. C) Vespa money. D) Fiat money. Show Answer Correct Answer: D) Fiat money. 12. A tax applied by the government on the sale of goods and services A) Direct tax. B) Sales tax. C) Indirect tax. D) None of above. Show Answer Correct Answer: B) Sales tax. 13. How could the Federal Reserve increase employment with monetary policy? A) The Fed could increase government spending. B) The Fed could increase the discount rate. C) The Fed could decrease the discount rate. D) The Fed could decrease government spending. Show Answer Correct Answer: C) The Fed could decrease the discount rate. 14. The board of directors of a corporation is responsible for A) Hiring officers / executives to run the business. B) Determining the price of the company's shares. C) Paying dividends to shareholders. D) Running the company's day-to-day operations. Show Answer Correct Answer: A) Hiring officers / executives to run the business. 15. If real GDP is greater than potential real GDP, then the economy is in ..... A) Long-Run Equilibrium. B) A recessionary gap. C) An expansionary gap. D) None of the Above. Show Answer Correct Answer: C) An expansionary gap. 16. Which of the following would be counted in this year's GDP? A) The sale of a previously occupied house. B) The value of a television produced last year but sold this year. C) The value of a loan taken out this year. D) The value of a savings bond sold by the federal government to investors this year. Show Answer Correct Answer: B) The value of a television produced last year but sold this year. 17. To curb monopolistic competition, the first act that the Indian government passed was A) MRTP Act,. B) CCI,. C) Consumer Protection Act,. D) Competition Act. Show Answer Correct Answer: A) MRTP Act,. 18. A budget deficit occurs when ..... A) The government brings in more revenue than it spends for a given year. B) The government spends more money than it brings in for a fiscal year. Show Answer Correct Answer: B) The government spends more money than it brings in for a fiscal year. 19. A graph that shows the quantities supplied at each and every possible price in the market. A) Supply curve. B) Supply schedule. C) Market supply curve. D) Law of Supply. Show Answer Correct Answer: A) Supply curve. 20. Unemployment insurance, Welfare, Medicare, Medicaid, and Social Security are key components of A) Fiscal policy. B) Monetary policy. C) Supply-side policy. D) None of above. Show Answer Correct Answer: A) Fiscal policy. 21. Which factor most directly affects the quantity of a good or service supplied in the market? A) Buyer preferences. B) The number of sellers. C) The number of consumers. D) Changes in related goods. Show Answer Correct Answer: B) The number of sellers. 22. Also known as take home pay, this is the amount left after all payrolldeductions have been taken from the gross income A) Net pay. B) Withholdings. C) Gross pay. D) Real pay. Show Answer Correct Answer: A) Net pay. 23. A non-profit does not make any money for its shareholders because A) All the profit goes to the government. B) They don't make any money whatsoever and are money losing organizations. C) All money it receives goes directly to the organization. D) The shareholders do not own the franchise. Show Answer Correct Answer: C) All money it receives goes directly to the organization. 24. Forecasting when a recession likely will begin and end A) Microeconomic. B) Macroeconomics. Show Answer Correct Answer: B) Macroeconomics. 25. Which topic is not studied in microeconomics? A) Economic growth. B) Monopoly and competition. C) Price elasticity of supply. D) Production possibility curves. Show Answer Correct Answer: A) Economic growth. 26. Which of the following is associated with peaks in the business cycle? A) Relatively high levels of unemployment. B) Relatively low levels of unemployment. C) Recessions. D) Both High Unemployment and Recession. Show Answer Correct Answer: B) Relatively low levels of unemployment. 27. How does the Central Bank maintain interest rates when there is an increase in tax rates? A) Reducing the amount of money in circulation. B) Increase the amount of money in circulation. C) Let balance be created naturally. D) Increase government spending. Show Answer Correct Answer: A) Reducing the amount of money in circulation. 28. Which of the followings is NOT one of the forms of inflation? A) Stagflation. B) Hyperinflation. C) Pre-inflation. D) Disinflation. Show Answer Correct Answer: C) Pre-inflation. 29. Why is the Long Run Aggregate Supply (LRAS) curve vertical? There is only ONE answer A) Wages become variable in the long run. B) Wages are still fixed in the long-run. C) Because the LRAS curve represents full employment and full employment always stay the same. D) Prices are fixed in the long run. Show Answer Correct Answer: A) Wages become variable in the long run. 30. Imagine you are an economist observing the market trends. You notice that there is a general increase in prices across all sectors of the economy. What term would you use to describe this phenomenon? A) Unemployment. B) Gross Domestic Product. C) Inflation. D) Consumer Price Index. Show Answer Correct Answer: C) Inflation. ← 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