This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 75 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 75 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Among the problems studied in macroeconomics are ..... A) Inflation rate in Malaysia. B) Market for Perodua car. C) Price of inferior good. D) Supply for smartphone. Show Answer Correct Answer: A) Inflation rate in Malaysia. 2. What are the three economic goals of policy makers? A) Economic growth, low unemployment, and stable prices. B) High inflation, high interest rates, and high taxes. C) Government control, income inequality, and international trade. D) Consumer spending, business investment, and government spending. Show Answer Correct Answer: A) Economic growth, low unemployment, and stable prices. 3. Low reserve requirements A) Increase the money supply. B) Lower the money supply. Show Answer Correct Answer: A) Increase the money supply. 4. Which set of numbers would be most alarming to officials monitoring the OVERALL economic health of an economy? A) 6.5% unemployment, 0% inflation, -3% growth. B) 8% unemployment, 4% inflation, -2% growth. C) 4% Unemployment, 2% inflation, 0% growth. D) 6% Unemployment, 2% inflation, 3% growth. Show Answer Correct Answer: B) 8% unemployment, 4% inflation, -2% growth. 5. The IS curve shifts to the left due to..... until..... A) Falling investment increases income and employment. B) Falling investment reduces income and employment. C) Increased investment, increasing the amount of income and employment. D) Increased investment, reduces the amount of income and employment. Show Answer Correct Answer: B) Falling investment reduces income and employment. 6. Elasticity refers to A) How producers of goods and services react to price changes. B) How consumers of goods and services react to price changes. C) How far a supply of scarce goods can be stretched. D) How often the price of a good or service changes when quantity demanded changes. Show Answer Correct Answer: B) How consumers of goods and services react to price changes. 7. Which of following leads to better economic development of country? A) Rapid circular flow of income. B) More injection. C) No leakages. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. Most expensive to start A) Limited Liability Partnership. B) Sole Proprietorship. C) Partnership. D) Corporation. Show Answer Correct Answer: D) Corporation. 9. A country can have a comparative advantage in everything they produce. A) True. B) False. Show Answer Correct Answer: B) False. 10. Expansionary fiscal policy involves A) Increasing government purchases or decreasing taxes. B) Increasing the money supply and decreasing interest rates. C) Increasing taxes or decreasing government purchases. D) Decreasing the money supply and increasing interest rates. Show Answer Correct Answer: A) Increasing government purchases or decreasing taxes. 11. A four sector model includes foreign trade. A) True. B) False. Show Answer Correct Answer: A) True. 12. Growth accounting enables us to: A) Analyze the differences in human capital attainment across countries. B) Discover the effects of technological progress on economic growth. C) Better calculate real GDP per capita. D) Compare growth rates across countries. E) Discover how long it takes the economy to grow. Show Answer Correct Answer: B) Discover the effects of technological progress on economic growth. 13. The cause of Liquidity Trap is A) People prefer to save their money in banks expecting high interest rates. B) People hoard cash because they expect bad events such as deflation, insufficient aggregate demand, or war. C) The government increases spending to reduce Aggregate Demand. D) All answers are wrong. Show Answer Correct Answer: B) People hoard cash because they expect bad events such as deflation, insufficient aggregate demand, or war. 14. Assume Malaysia now has an increasing employment rate, prices are now starting to rise since consumers have an increased consumption power. What is this phenomenon called? A) Deflation. B) Recession. C) Inflation. D) Increasing Prices. Show Answer Correct Answer: C) Inflation. 15. Demographic factors that influence consumption theory are..... A) Population and population consumption. B) Total population and household income. C) Population consumption and household wealth. D) Household income and household wealth. E) Interest rates and forecasts about the future. Show Answer Correct Answer: A) Population and population consumption. 16. What type of diagram is used as a simple depiction of macroeconomics A) Circular flow diagram. B) Historical chart. C) Flow chart. D) None of above. Show Answer Correct Answer: A) Circular flow diagram. 17. Which of the following is most likely to cause the long-run aggregate supply curve to shift to the left? A) Higher nominal wages. B) A decline in productivity. C) An increase in corporate taxes. D) None of above. Show Answer Correct Answer: B) A decline in productivity. 18. Which type of economy is usually paired with a Communist government? A) Mixed. B) Market. C) Command. D) Traditional. Show Answer Correct Answer: C) Command. 19. In terms of resources, what do businesses provide for households? A) Income. B) Private goods. C) Sales. D) Taxes. Show Answer Correct Answer: A) Income. 20. The idea that money to be paid out or received in the future is not equivalent to money paid out or received today A) PV/FV Money. B) Time Value of Money. C) Compound Money. D) SMART Money. Show Answer Correct Answer: B) Time Value of Money. 21. The aggregate demand curve shifts to the right when A) Taxes are cut. B) Government spending is reduced. C) The money supply is reduced. D) All of the above. Show Answer Correct Answer: A) Taxes are cut. 22. If exports INCREASE and imports stay the same, what happens? A) AS will increase. B) AD will decrease. C) AD will increase. D) AS will decrease. Show Answer Correct Answer: C) AD will increase. 23. Which type of unemployment is caused by employee skills that are obsolete and no longer needed? A) Seasonal. B) Structural. C) Frictional. D) Cyclical. Show Answer Correct Answer: B) Structural. 24. ..... is GDP that has been adjusted for price changes. A) Real GDP. B) No Cap GDP. C) Consumer GDP. D) Historical GDP. Show Answer Correct Answer: A) Real GDP. 25. When the government implement programs such as progressive income tax rates which of the following is likely to occur A) Equality is increase in efficiency is increased. B) Equality is increase in efficiency is decreased. C) Equality is decreased and efficiency is increased. D) Equality is decreased efficiency is decreased. E) Equality is increased and efficiency is unaffected. Show Answer Correct Answer: B) Equality is increase in efficiency is decreased. 26. What is a disadvantage of fiscal policy? A) It only acts on the supply side. B) Conflict with government objectives. C) Higher time lags than monetary policy. D) Effective in recession. Show Answer Correct Answer: B) Conflict with government objectives. 27. Of the following, which is the best example of structural unemployment? A) An auto worker who loses her job during a recession. B) A computer programmer who quits her job to move to a warmer climate. C) A construction worker who loses his job in the winter. D) A steel worker who is replaced by a robot. Show Answer Correct Answer: D) A steel worker who is replaced by a robot. 28. Who is regarded as Father of Modern Macro Economics? A) Karl Marx. B) Ragnar Frisch. C) J M Keynes. D) Adam Smith. Show Answer Correct Answer: C) J M Keynes. 29. Aggregate demand and Aggregate supply model uses to show the determination of ..... in an economy. A) Real GDP and income level. B) Real GDP and standard of living. C) Real GDP and price level. D) Real GDP and cost level. Show Answer Correct Answer: C) Real GDP and price level. 30. Taxes that come out of your paycheck include which ones? A) Social Security and Medicare taxes. B) Social Security and Excise taxes. C) Estate taxes and tariffs. D) Sales and progressive taxes. Show Answer Correct Answer: A) Social Security and Medicare taxes. ← 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