This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 82 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 82 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In 2020 the U.S. exported 93 million dollars worth of goods and service to Liberia. In 2020 the U.S. imported 45 million dollars worth of goods and services from Liberia. The U.S. has a trade ..... with Liberia. A) Surplus. B) Deficit. Show Answer Correct Answer: A) Surplus. 2. Which means prices are getting lower over time? A) Nirvana. B) Incredible. C) Deflation. D) Inflation. Show Answer Correct Answer: C) Deflation. 3. When there is a decrease in the price of DVD players what does change? A) The quantity supplied does not change. B) The quantity demanded does not change. C) We can not determine. D) The quantity supplied changes. Show Answer Correct Answer: D) The quantity supplied changes. 4. The quantity of money M2 is greater than the quantity of money M1. A) Lie. B) True. Show Answer Correct Answer: B) True. 5. Goods purchased for final purpose are ..... A) For Satisfaction of wants. B) For investment in firm. C) Both a and b. D) None of the above. Show Answer Correct Answer: C) Both a and b. 6. High inflation will affect..... the equity market. A) Positif. B) Constant. C) Negative. D) All three are correct. Show Answer Correct Answer: C) Negative. 7. In the consumption funciton, C= a+bY, A) 'a' varies with change in income. B) B = $\frac{\Delta\text{C}}{\Delta Y}\ $. C) 'C' is independent of Y. D) 'a' and 'b' varies with income while Y is constant. Show Answer Correct Answer: B) B = $\frac{\Delta\text{C}}{\Delta Y}\ $. 8. The percentage of a nations labor force that is unemployed. A) Unemployment. B) Gross Domestic Product. C) Inflation. D) Consumer Price Index. Show Answer Correct Answer: A) Unemployment. 9. Which of these terms are used interchangeably A) "goods and services" and "inputs". B) "goods and services" and "factors of production". C) "inputs" and "factors of production". D) "land, labor, and capital" and "goods and services". E) "inputs" and "goods and services". Show Answer Correct Answer: C) "inputs" and "factors of production". 10. When money is used to determine the worth of a product, it is being used as ..... A) Consumer price index. B) Unit of value. C) Medium of exchange. D) Store of value. Show Answer Correct Answer: B) Unit of value. 11. What is Real GDP? A) The value of current gross domestic product adjusted for inflation. B) The rate at which the number of unemployed people changes. C) The total value of goods produced and services provided in a country during one year. D) Changes in the value of a basket of goods and services purchased by the average urban consumer. Show Answer Correct Answer: A) The value of current gross domestic product adjusted for inflation. 12. The total income households have left after receiving government transfers and paying taxes is ..... A) Gross Domestic Product. B) Disposable Income. C) Private Savings. D) Inventories. Show Answer Correct Answer: B) Disposable Income. 13. The situation where quantity demand is equal to the quantity supplied; the combination of price and quantity where there is no economic pressure from surpluses or shortages that would cause the price or quantity to change A) Equilibrium. B) Price. C) Surplus. D) Price Ceiling. Show Answer Correct Answer: A) Equilibrium. 14. What is the difference between absolute advantage and comparative advantage? A) That the absolute advantage takes into account which sector is more intensive in factors of production and which product is intensive in that factor. B) That the comparative advantage takes into account which sector is more intensive in production factors and which product is intensive in that factor. C) That comparative advantage only takes into account who produces each good best, independent of the capabilities or efficiencies between countries. D) That the absolute advantage only takes into account who produces each good best, independent of the capacities or efficiencies between the countries. E) That absolute advantage takes into account who produces each good best, as well as the capabilities or efficiencies between countries. Show Answer Correct Answer: D) That the absolute advantage only takes into account who produces each good best, independent of the capacities or efficiencies between the countries. 15. An increase in labor productivity would most likely cause real gross domestic product and the price level to change in which of the following ways A) Increase Real GDP; Increase Price Level. B) Increase Real GDP; Decrease Price Level. C) Decrease Real GDP; Increase Price Level. D) Decrease Real GDP; Decrease Price Level. Show Answer Correct Answer: B) Increase Real GDP; Decrease Price Level. 16. What is the monetary policy? A) Reduced price. B) The changing of interest rate and influencing money supply. C) When inflation occurs. D) None of above. Show Answer Correct Answer: B) The changing of interest rate and influencing money supply. 17. This classification of money includes coins, paper money, checkable deposits. A) M1. B) M2. C) M3. D) None of above. Show Answer Correct Answer: A) M1. 18. Unemployment that rises during economic downturns and falls when the economy improves. A) Cyclical Unemployment. B) Frictional Unemployment. C) Seasonal Unemployment. D) Structural Unemployment. Show Answer Correct Answer: A) Cyclical Unemployment. 19. ..... refers to the money value of goods and services that all the producers are willing to supply in an economy in a given time period. A) Aggregate demand. B) Aggregate supply. Show Answer Correct Answer: B) Aggregate supply. 20. This reflects those who are actively seeking employment. A) Labor force. B) Underemployed. C) Unemployment rate. D) Full employment. Show Answer Correct Answer: C) Unemployment rate. 21. What is trade embargo? A) Lowering prices. B) A government order that restricts prices changing. C) A government order that restricts trade within a specified country. D) A group of people that work together. Show Answer Correct Answer: C) A government order that restricts trade within a specified country. 22. Macroeconomics as a separate branch of economics, emerged after the British economist John Maynard Keynes published his celebrated book A) The Wealth of Nations. B) On the Principles of political Economy and Taxation. C) The Affluent Society. D) The General Theory of Employment, Interest and Money. Show Answer Correct Answer: D) The General Theory of Employment, Interest and Money. 23. The Keynesian viewpoint suggests that expansionary fiscal policy in an economy with spare capacity: A) Reduces growth without inflationary pressures. B) Creates growth with inflationary pressures. C) Has no significant impact on growth or inflation. D) Creates growth without inflationary pressures. Show Answer Correct Answer: D) Creates growth without inflationary pressures. 24. The short-run Phillips curve shows the relationship between the inflation rate and the A) Unemployment rate. B) GDP growth. C) Nominal interest rate. D) Real interest rate. E) Employment rate. Show Answer Correct Answer: A) Unemployment rate. 25. Which of the following is NOT a function of the Federal Reserve? A) Creating the government's budget. B) Clearing checks. C) Setting the fractional reserve rate. D) Lending banks money. Show Answer Correct Answer: A) Creating the government's budget. 26. A(n) ..... bank trades in financial assets and is not covered by deposit insurance. A) Investment. B) Central. C) Commercial. D) Savings and Loan. Show Answer Correct Answer: A) Investment. 27. A decrease in taxes increases A) PE by $\Delta T$. B) PE by $\frac{MPC}{\Delta T}$. C) PE by $MPC\ \times\Delta T$. D) PE by $\Delta G$. Show Answer Correct Answer: C) PE by $MPC\ \times\Delta T$. 28. How much stuff businesses can make and sell in the whole country at a certain time. A) Aggregate Supply (AS). B) Gross domestic product (GDP). C) Aggregate Demand (AD). D) Potential GDP. Show Answer Correct Answer: A) Aggregate Supply (AS). 29. Economists maintain that ..... is central to the actions of individuals, families and companies. A) Marginal cost. B) Scarcity. C) Innovation. D) Inflation. Show Answer Correct Answer: A) Marginal cost. 30. An increase in government spending financed by borrowing will result in which of the following? A) The rate of physical capital accumulation will decrease in the long run. B) Private savings will decrease in the short run. C) Potential real output will increase in the long run. D) Interest-sensitive private sector spending will increase in the short run. E) The real interest rate will decrease in the short run. Show Answer Correct Answer: A) The rate of physical capital accumulation will decrease in the long run. ← 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