This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 81 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 81 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. By engaging in the trade of goods and services with one another, the members of an economy can all be better off. This is due to ..... A) Scarcity. B) Specialization. C) Allocative efficiency. D) Entrepreneurship. Show Answer Correct Answer: B) Specialization. 2. One measure of the economy macroeconomists pay attention to to study the pace of growth in the economy is A) Supply. B) Inflation. C) Demand. D) Equilibrium price. Show Answer Correct Answer: B) Inflation. 3. What are the three criteria to be counted unemployed? A) 16+ years, paid jobs, not seeking employment. B) 14+ years, no paid jobs, seeking employment. C) 15+ years, no paid jobs, not seeking employment. D) 16+ years, no paid jobs, seeking employment. Show Answer Correct Answer: D) 16+ years, no paid jobs, seeking employment. 4. Expansionary fiscal policy will A) Not shift the aggregate demand curve. B) Shift the short-run aggregate supply curve to the left. C) Shift the aggregate demand curve to the left. D) Shift the aggregate demand curve to the right. Show Answer Correct Answer: D) Shift the aggregate demand curve to the right. 5. Which one of the following combinations, is most likely to occur in the recovery phase of the economic cycle? A) Decrease in GDP, increase in inflation rate, increase in unemployment, decrease in investment. B) Increase in GDP, decrease in inflation rate, decrease in unemployment, increase in investment. C) Increase in GDP, increase in inflation rate, decrease in unemployment, increase in investment. D) Increase in GDP, decrease in inflation rate, increase in unemployment, decrease in investment. Show Answer Correct Answer: C) Increase in GDP, increase in inflation rate, decrease in unemployment, increase in investment. 6. Suppose the Marginal Propensity to Consume (MPC) equals 75%. If the income, Y, rises by 100 and at the same time taxes, T, increase by 20 then the consumption changes by A) 80. B) 100. C) 60. D) 75. Show Answer Correct Answer: C) 60. 7. An example of a government transfer is a(n): A) Expenditure on an interstate highway. B) Salary for members of the armed forces. C) Social Security payment. D) Salary earned as an economist with a government agency. Show Answer Correct Answer: C) Social Security payment. 8. Changes in gross domestic product MOST directly measure A) Price inflation. B) Economic growth. C) Employment rates. D) Aggregate demand. Show Answer Correct Answer: B) Economic growth. 9. What is seasonal unemployment? A) Unemployed due to seasonal allergies. B) Unemployed because employers need their type of human capital during only ONE part of the year. C) Unemployed due to not having the skills for the job. D) Unemployed because the economy is in a recession. Show Answer Correct Answer: B) Unemployed because employers need their type of human capital during only ONE part of the year. 10. The classical principle of monetary neutrality states that changes in the money supply do not influence ..... variables and is thought most applicable in the ..... run. A) Real, short. B) Nominal, long. C) Real, long. D) Nominal, short. Show Answer Correct Answer: C) Real, long. 11. Which of the following are important roles of the government? A) Protecting property rights. B) Providing a legal system. C) Intervening when insufficient competition occurs in the marketplace. D) Promoting stability and economic growth. E) All of the above. Show Answer Correct Answer: E) All of the above. 12. Which of the following is TRUE about the Board of Governors? A) The operation of the Federal Reserve is directed by the Board of Governors. B) It supervises the 12 Federal Reserve banks and regulates some activities of member banks. C) The Board of Governors are voting members of the FOMC (Federal Open Market Committee) which make economic decisions such as whether to raise or lower interest rates. D) All the above are true statements about the Board of Governors. Show Answer Correct Answer: D) All the above are true statements about the Board of Governors. 13. An expansionary policy means that the Fed is attempting to A) Increase the size of the nation's money supply. B) Decrease the size of the nation's money supply. Show Answer Correct Answer: A) Increase the size of the nation's money supply. 14. Anything within the production process, whether human or technological, that makes production more efficient A) Entrepreneurship. B) Capital. C) Land. D) Labor. Show Answer Correct Answer: B) Capital. 15. What is the microeconomics mean A) A small group of business. B) A large group of business that respond to the country economics. C) A government business. D) None of above. Show Answer Correct Answer: A) A small group of business. 16. Which of the following best defines inflation? A) A period of significant economic decline characterized by a decrease in GDP and rising 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) The adjustment of interest rates by the central bank to control the money supply. Show Answer Correct Answer: B) The sustained increase in the general price level of goods and services over time. 17. These are instruments in monetary policy EXCEPT ..... A) Regulation of foreign trade. B) Selective credit control. C) Bank discount or bank rate. D) Open market operation. Show Answer Correct Answer: A) Regulation of foreign trade. 18. In the production of sugar, sugarcane is: A) A final good. B) A capital good. C) An intermediate good. D) None of these. Show Answer Correct Answer: C) An intermediate good. 19. Which of these is the BEST definition of GDP? A) A description of the quality of life in a nation. B) Average value of production of intermediate goods. C) A collection of all government assets that could earn money. D) Market value of all goods and services produced in a country. Show Answer Correct Answer: D) Market value of all goods and services produced in a country. 20. The percent of the labor force that wants to work but isn't A) Economic Growth. B) Gross Domestic Product. C) Consumer Price Index. D) Unemployment Rate. Show Answer Correct Answer: D) Unemployment Rate. 21. The Federal Open Market Committee sells bonds. What type of policy is this? A) Expansionary Fiscal. B) Contractionary Monetary. C) Contractionary Fiscal. D) Expansionary Monetary. Show Answer Correct Answer: B) Contractionary Monetary. 22. Deficits in the balance of payments can be solved by.....[Deficits in the balance of payments can be solved through.....] A) Balance of payment. B) Trade deficit [trade deficit]. C) Trade balance [trading balance]. D) Statistical discrepancy [ketepatan statistic]. Show Answer Correct Answer: C) Trade balance [trading balance]. 23. An outward shift in the aggregate demand curve when there's spare capacity in the economy: A) Increases inflation rate significantly. B) Reduces short-run growth. C) Puts little pressure on the inflation rate to increase. D) Decreases overall demand. Show Answer Correct Answer: C) Puts little pressure on the inflation rate to increase. 24. Which is NOT a part of the formula used to calculate GDP? A) Consumption Expenditures. B) Investment Expenditures. C) Imports and Exports. D) Government Taxes. Show Answer Correct Answer: D) Government Taxes. 25. What is the value of MPC when MPS is zero? A) 1. B) 0. C) 0.5. D) None of above. Show Answer Correct Answer: A) 1. 26. Endogenous variables (P, QD, QS) are determined A) Outside the model. B) In the model. Show Answer Correct Answer: B) In the model. 27. Which monetary policy would the FED use in a recession? A) Decrease interest rates. B) Increase government spending. C) Increase interest rates. D) Increase taxes. Show Answer Correct Answer: A) Decrease interest rates. 28. What do you mean by leakages? A) The factors leading to reduction of national income. B) The factors leading to increase national income. C) Both 1 and 2. D) None of the above. Show Answer Correct Answer: A) The factors leading to reduction of national income. 29. "Crowding out" refers to ..... A) Reduced exports due to rising exchange rates. B) Supply-side tax cuts reducing entitlement spending. C) Reduced consumption due to increases in marginal tax rates. D) A reduction in the availability of private capital. E) None of these. Show Answer Correct Answer: D) A reduction in the availability of private capital. 30. What is the minimum amount of money that banks are required to leave in reserve? A) Open Market Operations. B) Discount Rates. C) Excess Reserves. D) Required Reserves. Show Answer Correct Answer: D) Required Reserves. ← 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