This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 78 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 78 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... keep track of the flows of money among different sectors of the economy. A) National Accounts. B) Stocks. C) Product Markets. D) Financial Markets. Show Answer Correct Answer: A) National Accounts. 2. What are the different types of unemployment? A) Voluntary, involuntary, temporary, and permanent. B) Demand-pull, cost-push, technological, and natural. C) Full-time, part-time, self-employed, and underemployed. D) Frictional, structural, cyclical, and seasonal. Show Answer Correct Answer: D) Frictional, structural, cyclical, and seasonal. 3. The following is a question regarding "Macroeconomics" A) Why do some countries experience drastic increases in GDP?. B) Why do all countries experience recession and depression?. C) Why does the United States have such high inflation rates?. D) All are correct. Show Answer Correct Answer: D) All are correct. 4. Do you think the typical time lag for fiscal policy is likely to be longer or shorter than the time lag for monetary policy? A) The typical time lag for fiscal policy is likely to be the same as the time lag for monetary policy. B) The typical time lag for fiscal policy is likely to be shorter than the time lag for monetary policy. C) The typical time lag for fiscal policy is likely to be longer than the time lag for monetary policy. . D) The typical time lag for fiscal policy is likely to be non-existent compared to the time lag for monetary policy. Show Answer Correct Answer: C) The typical time lag for fiscal policy is likely to be longer than the time lag for monetary policy. . 5. Which of these people is officially unemployed A) A secretary who took 6 months off for maternity leave. B) An aspiring actress who waits tables but would rather act. C) Maid who got fired and will start a new job in 2 weeks. D) A student who only works 4 hours a week in the library. Show Answer Correct Answer: C) Maid who got fired and will start a new job in 2 weeks. 6. Which of the following is a macroeconomic variable? A) General price level. B) Price of cloth. C) Quantity of cotton. D) Loan taken by a farmer. Show Answer Correct Answer: A) General price level. 7. When commercial bank fails to get any financial assistance than central bank acts as a ..... A) Clearing house. B) Banker to govt. C) Lender of last resort. D) None of these. Show Answer Correct Answer: C) Lender of last resort. 8. Inflation measures how much more expensive a set of goods and services has become over a certain period, usually a year A) False. B) True. Show Answer Correct Answer: B) True. 9. Jack and Jill are both skilled at fetching water. Jack can fetch 5 pails per hour and Jill can fetch 8 pails per hour. Who has the absolute advantage in fetching pails of water? A) Jack. B) Jill. C) Neither. D) None of above. Show Answer Correct Answer: B) Jill. 10. What are the two main types of GDP? A) Normal & Inferior. B) Growth & Stabilizing. C) Nominal & Real. D) Real & Nonmarket. Show Answer Correct Answer: C) Nominal & Real. 11. An increase in the cost of production shifts the aggregate ..... curve to the ..... A) Demand; right. B) Demand; left. C) Supply; right. D) Supply; left. Show Answer Correct Answer: D) Supply; left. 12. Which of these is NOT a bank type described in the textbook? A) Investment banks. B) Retail banks. C) Central banks. D) Cooperative banks. E) All of these statements are bank types described in the textbook. Show Answer Correct Answer: E) All of these statements are bank types described in the textbook. 13. An increase in government purchases increases A) PE by change in I. B) PE by change in G. C) PE by change in T. D) PE by change in C. Show Answer Correct Answer: B) PE by change in G. 14. Jimbo set up a pizza shop right beside a high school to take advantage of the unhealthy eating habits of teens. What type of ownership is this? A) Sole Proprietorship. B) Cooperative. C) Corporation. D) Partnership. Show Answer Correct Answer: A) Sole Proprietorship. 15. Annie owns a large amount of land in the country. Spiffco decides to build a large factory on that property, and pay Annie rent for the use of the land. Annie represents which sector of the Circular Flow Model? A) Households. B) Firms. C) Product Market. D) Goods and Services. Show Answer Correct Answer: A) Households. 16. In this tax structure a single tax rate (percentage) is applied to all levels of income. Some states use this as structure for State Income tax, and our FICA taxes are collected in this way. A) Regressive Tax. B) Proportional or Flat Tax. C) Excise Tax. D) Progressive Tax. Show Answer Correct Answer: B) Proportional or Flat Tax. 17. The natural rate of unemployment is the A) Unemployment rate that would prevail with zero inflation. B) Rate associated with the highest possible level of GDP. C) Difference between the long-run and short-run unemployment rates. D) Amount of unemployment that the economy normally experiences. Show Answer Correct Answer: D) Amount of unemployment that the economy normally experiences. 18. Which best describes an export or exported good? A) Goods that are sold within the same country. B) Goods that are sold to foreign countries. Show Answer Correct Answer: B) Goods that are sold to foreign countries. 19. A recession would lead to A) A decrease in DLF. B) An increase in SLF. C) An increase in DLF. D) A decrease in SLF. Show Answer Correct Answer: A) A decrease in DLF. 20. When individuals lose jobs due to fall in aggregate demand, often during an economic recession. A) Seasonal Unemployment. B) Structural Unemployment. C) Cyclical Unemployment. D) Frictional Unemployment. Show Answer Correct Answer: C) Cyclical Unemployment. 21. When the federal government decides to pay senators more than it pays soldiers, it answers the ..... question. A) Why. B) For whom. C) What. D) How. Show Answer Correct Answer: B) For whom. 22. Contracting Monetary Policy happens during a expansion of the economy? A) True. B) False. Show Answer Correct Answer: B) False. 23. The term "factors of production" means: A) How society creates jobs. B) Things or skills needed to produce goods or services. C) The resources of the government. D) How we spend our money. Show Answer Correct Answer: B) Things or skills needed to produce goods or services. 24. If the United States is experiencing inflation, the Fed will likely A) Increase the supply of money in the economy. B) Decrease the supply of money in the economy. Show Answer Correct Answer: B) Decrease the supply of money in the economy. 25. Which policy measure would be classified as a fiscal policy instrument? A) The imposition of a quota. B) A cut in the interest rate of interest. C) A rise in government spending on defence. D) An increase in the money supply. Show Answer Correct Answer: C) A rise in government spending on defence. 26. Money that Congress is MANDATED or required by existing law to spend on certain programs or to use for interest payment on the national debt. A) Mandatory spending. B) Discretionary spending. C) Entitlements. D) Tariffs. Show Answer Correct Answer: A) Mandatory spending. 27. Which one of the following is a factor that positively influences aggregate supply? A) A fall in business confidence. B) An increase in electricity prices. C) A reduction of variable interest rates charged to small businesses. D) A decrease in the Australian dollar relative to the currencies of Australia's major trading partners. Show Answer Correct Answer: C) A reduction of variable interest rates charged to small businesses. 28. Which type of unemployment is a mismatch of skills and jobs? A) Full. B) Cyclical. C) Seasonal. D) Structural. E) Frictional. Show Answer Correct Answer: D) Structural. 29. The study of the economy as a whole and how major sectors of the economy interact. A) Unemployed. B) Incentives. C) Inflation. D) Macroeconomics. Show Answer Correct Answer: D) Macroeconomics. 30. Money owed to a person or a business A) Late Fee. B) Credit. C) Debit. D) Debt. Show Answer Correct Answer: D) Debt. ← 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