This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 77 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 77 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following statements are true about Frictional Unemployment? A) People change jobs due to a change in the technology. B) People change jobs because of the shift in the economy. C) People are looking for jobs because they were terminated due demand changes. D) None of the statements above are correct. Show Answer Correct Answer: C) People are looking for jobs because they were terminated due demand changes. 2. Why may full employment and price stability conflict as government aims? A) Full employment may benefit from a fall in the exchange rate whereas price stability may benefit from a rise in the exchange rate. B) Full employment may benefit from an increase in aggregate supply whereas price stability may benefit from a decrease in aggregate supply. C) To achieve full employment may require a decrease in aggregate demand whereas to achieve price stability may require an increase in aggregate demand. D) To achieve full employment may require an increase in the rate of interest whereas price stability may require a decrease in the rate of interest. Show Answer Correct Answer: A) Full employment may benefit from a fall in the exchange rate whereas price stability may benefit from a rise in the exchange rate. 3. A worker in Ecuador can earn $ 3 per day making cotton cloth on a hand loom. A worker in the United States can earn $ 70 per day making cotton cloth with a mechanical loom. What accounts for the difference in wages? A) U.S. textile workers belong to a union. B) There is little demand for cotton cloth in Ecuador and great demand in the U.S. C) Labor is more productive making cotton cloth with a mechanical loom than with a hand loom. D) Ecuador has a low-wage policy to make its textile industry more competitive in world markets. Show Answer Correct Answer: C) Labor is more productive making cotton cloth with a mechanical loom than with a hand loom. 4. Currently, the upper bound ceiling and the lower bound for the Liquidity Adjustment (LAF) Corridor are: A) MSF and SDF respectively. B) SDF and MSF respectively. C) Repo and Reverse Repo respectively. D) Reverse Repo and Repo rate respectively. Show Answer Correct Answer: A) MSF and SDF respectively. 5. The federal government tries to maintain price stability by limiting ..... A) Equity. B) Unemployment. C) Money Supply. D) Inflation. Show Answer Correct Answer: D) Inflation. 6. Social welfare programs that people are"entitled to" and benefit from if they meet certain eligibility requirements, such as being at a particular income level, or age. A) Mandatory spending. B) Discretionary spending. C) Entitlements. D) Tariffs. Show Answer Correct Answer: C) Entitlements. 7. The interest rate charged by the Fed, when lending to a financial institution A) Discount rate. B) Interest rate score. C) Variable certificate of deposit. D) None of above. Show Answer Correct Answer: A) Discount rate. 8. Based on a model developed from the economic situation of one person one island; two people one island economy; etc; from an economy without money (moneyless economy) to a money economy (money economy) is it possible to have an economy without interest? So, interest on money..... in the economic model. A) No need. B) Not important. C) Unnecessary and unimportant. D) Very necessary and very important. Show Answer Correct Answer: C) Unnecessary and unimportant. 9. A business where a few people share ownership and responsibility is ..... A) Sole proprietorship. B) Oligopoly. C) Corporation. D) Partnership. Show Answer Correct Answer: D) Partnership. 10. The contractionary fiscal policy is imposed by the government to ..... A) Reduce problems of inflation. B) . reduce problems of deflation. C) Increase aggregate demand. D) Increase the money supply in the economy. Show Answer Correct Answer: A) Reduce problems of inflation. 11. The real salary is the salary level including all additional subsidies. A) Lie. B) True. Show Answer Correct Answer: A) Lie. 12. The price where quantity demand is equal to quantity supplied A) Excess Supply. B) Excess Demand. C) Equilibrium Price. D) Equilibrium Quantity. Show Answer Correct Answer: C) Equilibrium Price. 13. When AD curve shift to the right, what happen to LM curve? A) LM curve unchanged. B) LM curve shift to the right. C) LM curve shift to the left. D) The change in AD curve has no effect to the changes of LM curve. Show Answer Correct Answer: C) LM curve shift to the left. 14. An increase in the number of consumers can cause A) The demand curve to shift left. B) The demand curve to shift right. C) The demand curve to shift up. D) Diminishing returns. Show Answer Correct Answer: B) The demand curve to shift right. 15. It involves publicly announcing an inflation forecast which the BSP promises to achieve. A) Financial Stability. B) Inflation Target. C) Monetary policy. D) Price Stability. Show Answer Correct Answer: B) Inflation Target. 16. Which of the following represents a withdrawal from the circular flow of income? A) Private funding for a national arts centre. B) The extension, by the government, of the existing highway network. C) The purchase by a domestic department store of designer clothes produced abroad. D) The commissioning of a domestic firm of consultant engineers by a foreign oil company to investigate suspected structural defects in some pipelines. Show Answer Correct Answer: C) The purchase by a domestic department store of designer clothes produced abroad. 17. Gross National Product minus Net National Product is called ..... A) Indirect Tax. B) Net National Product. C) Depreciation. D) Gross Domestic Product. Show Answer Correct Answer: C) Depreciation. 18. The long run Philips curve is also known as the A) Natural rate of inflation. B) Real interest rate. C) Natural unemployment rate. D) Real output rate. Show Answer Correct Answer: C) Natural unemployment rate. 19. What is excluded from determining GDP? A) Non consumer goods. B) Used goods. C) Black market sales. D) All the above. Show Answer Correct Answer: D) All the above. 20. They provide the factors of production specifically land, labor, and capital to be used in the production process. A) INTERNATIONAL TRADE. B) FIRMS. C) GOVERNMENT. D) BANKS. E) HOUSEHOLDS. Show Answer Correct Answer: E) HOUSEHOLDS. 21. The value of the final goods and services produced in a given year expressed in terms of the prices in a reference base year. A) Real GDP. B) Nominal GDP. C) Gross Domestic Product. D) Business Cycle. Show Answer Correct Answer: A) Real GDP. 22. Refer to Table 1 below. The value for national income in billions of dollars is Table 1Table 1:Compensation of employees 34Corporate Profit 67Proprietor's Income 10Net Interest 54Equipment 12Rental Income 34 Depreciation 10Indirect taxes 66Direct taxes 12Subsidies 70Payments of Factor income to the rest of the world 8Receipts of Factor income from the rest of the world 5 A) 195. B) 207. C) 222. D) 219. Show Answer Correct Answer: A) 195. 23. If the government REDUCES taxes on CONSUMERS what will happen? A) AD will decrease. B) AD will increase. C) AS will increase. D) AS will decrease. Show Answer Correct Answer: B) AD will increase. 24. Which of the following is a monetary tool? A) Government Spending. B) Discount Rate. C) Taxes. D) None of above. Show Answer Correct Answer: B) Discount Rate. 25. IRS stands for ..... A) Important Revenue Service. B) Internal Revenue Service. C) International Reserve Service. D) Internal Reports System. Show Answer Correct Answer: B) Internal Revenue Service. 26. Which one the following would be regarded as a supply-side shock for the UK economy? A) An economic downturn in the US economy affecting UK exports. B) A rise in interest rates discouraging borrowing. C) Rising oil and gas prices increasing the costs of UK firms. D) A rise in tax rates imposed on household incomes. Show Answer Correct Answer: C) Rising oil and gas prices increasing the costs of UK firms. 27. Individuals are unemployed due to a lack in skills that modern industries need, change in technology. A) Seasonal Unemployment. B) Frictional Unemployment. C) Structural Unemployment. D) Cyclical Unemployment. Show Answer Correct Answer: C) Structural Unemployment. 28. It is the list all final goods and services sold within an economy for a period of time. A) Gross Domestic Product. B) Market Basket of Goods. C) Consumer Price Index. D) Gross National Product. Show Answer Correct Answer: B) Market Basket of Goods. 29. What is the value of the money multiplier and the total value at the end with the following data? Initial deposit 1500 mm Allowance 20% A) Money multiplier is 7.5 mm and the value at the end is 5. B) Money multiplier is 5 and the value at the end is 7.5 mm. C) Money multiplier is 0.2 and the value at the end is 300 mm. D) Money multiplier is 7.5 and the value at the end is 5 mm. Show Answer Correct Answer: B) Money multiplier is 5 and the value at the end is 7.5 mm. 30. Capitalism can be defined as ..... A) Is an economic system in which private individuals or businesses own capital goods. The production of goods and services is based on supply and demand. B) Is an economic system in which private individuals or businesses own capital goods. The production of goods and services is based on self interest. Show Answer Correct Answer: A) Is an economic system in which private individuals or businesses own capital goods. The production of goods and services is based on supply and demand. ← 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