This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 74 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 74 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... is the study of aggregates. A) Managerial economics. B) Micro economics. C) Macroeconomics. D) Development economics. Show Answer Correct Answer: C) Macroeconomics. 2. The growing interdependence of the world's economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information is the ..... A) Multiculturalism. B) International Trade. C) Ecommerce. D) Globalization. Show Answer Correct Answer: D) Globalization. 3. If people are made unemployed because of a fall in aggregate demand this is known as: A) Frictional unemployment. B) Seasonal Unemployment. C) Cyclical unemployment. D) Structural Unemplyment. Show Answer Correct Answer: C) Cyclical unemployment. 4. As consumer confidence fell and the economy experienced a downturn, Bob was laid-off from his job at Cisco Systems. Bob has been looking for a new job, but it seems no one is hiring right now. Bob is experiencing which type of unemployment? A) Seasonal Unemployment. B) Structural Unemployment. C) Cyclical Unemployment. D) Frictional Unemployment. Show Answer Correct Answer: C) Cyclical Unemployment. 5. Economic growth is one of the factors affecting ..... A) AS CURVE. B) AD CURVE. Show Answer Correct Answer: A) AS CURVE. 6. When a business provides goods or services, it receives ..... in return. A) Income. B) Wages. C) Profit. D) Capital. Show Answer Correct Answer: A) Income. 7. Fiscal policy is..... A) Policies implemented by the government by regulating the state revenue and expenditure budget. B) Policies implemented by the government by regulating the state budget. C) Policies implemented by the government by regulating the money supply and/or changing the demand for money. D) All true. E) All wrong. Show Answer Correct Answer: A) Policies implemented by the government by regulating the state revenue and expenditure budget. 8. How is a general partnership organized? A) Every partner shares equally in both responsibility and liability. B) The doctors, lawyers, or accountants who form a general partnership hire others to run the partnership. C) No partner is responsible for the debts of the partnership beyond his or her investment. D) Only one partner is responsible for the debts of the partnership. Show Answer Correct Answer: A) Every partner shares equally in both responsibility and liability. 9. An increase in the Consumer Price Index is commonly referred to as A) Inflation. B) Unemployment. C) Deflation. D) Discouraged workers. E) Economic growth. Show Answer Correct Answer: A) Inflation. 10. Which of the following is related to macroeconomics? A) An empirical analysis of general price levels and unemployment rates since 1999. B) A study of how hiring more foreign workers affect the construction sector. C) An investigation of petrol price increases and the impact on Malaysians. D) An examination of the income of IT graduates. Show Answer Correct Answer: A) An empirical analysis of general price levels and unemployment rates since 1999. 11. The following are the goal of macroeconomics EXCEPT A) Price stability. B) Equitable distribution of income. C) Economic growth. D) High unemployment. Show Answer Correct Answer: D) High unemployment. 12. A healthcare program for the elderly and disabled A) Medicare. B) Social security. C) State income tax. D) Federal income tax. Show Answer Correct Answer: A) Medicare. 13. When the labour market is in equilibrium there will be no A) Seasonal unemployment. B) Frictional unemployment. C) Structural unemployment. D) Demand deficient unemployment. Show Answer Correct Answer: D) Demand deficient unemployment. 14. The U.S. has a trade ..... with Tuvalu A) Surplus. B) Deficit. Show Answer Correct Answer: A) Surplus. 15. What is the total value of all goods and services produced in a country each year? A) Inflation. B) Unemployment Rate. C) Gross Domestic Product. D) Consumer Price Index. Show Answer Correct Answer: C) Gross Domestic Product. 16. $\Delta k=sf\left(k\right)-\left(\delta+n\right)k$ A) Equation of motion for k with population growth. B) False. Show Answer Correct Answer: A) Equation of motion for k with population growth. 17. An economy where economic decisions are decentralized, private individuals own resources, and business supply good and services based on demand A) Command Market. B) Market Economy. C) Division of Labor. D) Imports. Show Answer Correct Answer: B) Market Economy. 18. Which of the following is NOT a an exmaple of one of the four factors of production? A) Bill Gates. B) A quarter. C) A factory. D) Oil. Show Answer Correct Answer: B) A quarter. 19. According to Friedman, people plan their consumption based on ..... A) Measured income. B) Relative income. C) Absolute income. D) Permanent income. Show Answer Correct Answer: D) Permanent income. 20. An economy is in recession with price deflation and rising unemployment. All other things being equal, which one of the following combination of policies would be most appropriate in these circumstances? A) Low interest rates, a higher budget deficit and a depreciation of the pound. B) Low interest rates, expansion of the money supply and an appreciation of the pound. C) Higher government spending, higher taxes and a contraction of the money supply. D) Higher government spending, higher interest rates and an appreciation of the pound. Show Answer Correct Answer: A) Low interest rates, a higher budget deficit and a depreciation of the pound. 21. The total market value of all final goods and services produced within the borders of a country. A) Gross National Product GNP. B) Gross Domestic Product GDP. C) Consumer Price Index CPI. D) Social Progress Index SPI. Show Answer Correct Answer: B) Gross Domestic Product GDP. 22. According to the ....., the real quantity of money is always at its long-run equilibrium level. A) Classical Model of the Price Level. B) Keynesian Model of the Price Level. C) Supply-Side Model of the Price Level. D) None of above. Show Answer Correct Answer: A) Classical Model of the Price Level. 23. What is the difference between inflation targeting and the Taylor rule? A) The Central Bank's success is easier to judge using the Taylor rule. B) Inflation targeting is backward-looking while the Taylor rule is forward-looking. C) Inflation targeting is less restrictive, while the Taylor rule is more restrictive. D) Inflation targeting is forward-looking while the Taylor rule is backward-looking. Show Answer Correct Answer: D) Inflation targeting is forward-looking while the Taylor rule is backward-looking. 24. Sara is an economist who wants to measure the health of the nation's economy based on the total value of all final goods and services produced. Which would be the most useful economic indicator that Sara could use? A) Gross Domestic Product (GDP). B) Unemployment Rate. Show Answer Correct Answer: A) Gross Domestic Product (GDP). 25. If the central bank lowers the interest rate, what kind of credit will commercial banks be able to give? A) Increased. B) Decrease. C) Does not change. D) All wrong. Show Answer Correct Answer: A) Increased. 26. Is the interest rate that the Fed charges banks to borrow money from them. A) Reserve requirement. B) Check clearing. C) Money supply. D) Discount rate. Show Answer Correct Answer: D) Discount rate. 27. The "Private sector" is firms owned by shareholders and individuals A) False. B) True. Show Answer Correct Answer: B) True. 28. What is the main area of study in macroeconomics? A) The choices and personal finances of individuals. B) The use of resources and production by corporations. C) The performance of the national economy. D) The ways the individuals affect the choices of corporations. Show Answer Correct Answer: C) The performance of the national economy. 29. Which of the following is an example of a nonmarket transaction? A) Having a garage sale to help pay for your family vacation next summer. B) Helping your elderly neighbor with their yard work. C) Paying a web designer to create a new website for your business. D) None of above. Show Answer Correct Answer: B) Helping your elderly neighbor with their yard work. 30. A Recessionary Gap Is What? A) Output is low and unemployment is more than the natural rate of unemployment. B) Laws that reduce inflation and decrease GDP. C) A gap with higher prices and a decrease in GDP. D) Laws that reduce unemployment and increase GDP. Show Answer Correct Answer: A) Output is low and unemployment is more than the natural rate of unemployment. ← 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