This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 83 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 83 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Will the following scenario affect the current account or capital account, and will the transaction be a debit or credit? An American receives quarterly dividend payments (profits) from stock she owns in a German company. A) Capital account; credit. B) Current account; debit. C) Capital account; debit. D) Current account; credit. Show Answer Correct Answer: D) Current account; credit. 2. Why does the Federal Reserve require banks to keep a percentage of their funds in reserve? A) To balance the budget. B) To buy bonds. C) To supply cash withdrawals. D) To ensure business investment. Show Answer Correct Answer: C) To supply cash withdrawals. 3. How is economic growth defined? A) When a country's population increases. B) When the government spends more money than it collects in taxes. C) When a country makes and sells more goods and services over time. D) When prices for goods and services go down. Show Answer Correct Answer: C) When a country makes and sells more goods and services over time. 4. Alberto is a carpenter. He needs a new saw in order to make more cabinets to sell to his buyers. To do this, he sells a bench he has made, and uses the money to purchase a new saw. What conclusion can you make using this example? A) Alberto is suing money as a unit of account. B) Alberto is using money as a store of value. C) Alberto is using money as a means of deferring payment. D) Alberto is using money as a medium of exchange. Show Answer Correct Answer: D) Alberto is using money as a medium of exchange. 5. If a great ad campaign for Nike shoes comes out featuring baby Yoda, while the price of leather decreases, what will happen to the market for Nike shoes? A) Eq P decreases, but we don't know what happens to Eq Q. B) Eq P increases, but we don't know what happens to Eq Q. C) Eq Q increases, but we don't know what happens to Eq P. D) Eq Q decreases, but we don't know what happens to Eq P. Show Answer Correct Answer: C) Eq Q increases, but we don't know what happens to Eq P. 6. Microeconomics looks at the economy through a ..... A) Spectacles. B) Microscope. C) Lens. D) Mirror. Show Answer Correct Answer: B) Microscope. 7. Define fiscal policy. A) Any action taken by the government or monetary authorities (Monetary Policy Committee in the Bank of England) to shift the AD curve. B) Involves the manipulation of monetary variables in order achieve government objectives. C) Involves the government running a government or fiscal deficit (budget deficit). D) Any action taken by the government or monetary authorities (Monetary Policy Committee in the Bank of England) to shift the AS curve. Show Answer Correct Answer: C) Involves the government running a government or fiscal deficit (budget deficit). 8. Irrational decision maker takes an action if and only if A) The marginal benefit of the action exceeds the marginal cost of the action. B) The opportunity cost of the action of zero. C) The marginal cost of the action is zero. D) The marginal cost of the action exceeds the marginal benefit of the action. E) The marginal benefit of the action is maximized. Show Answer Correct Answer: A) The marginal benefit of the action exceeds the marginal cost of the action. 9. What is one way the government can influence the economy during a recession? A) Increase spending or cut taxes. B) Decrease spending or increase taxes. C) Implement price controls on goods and services. D) Restrict international trade. Show Answer Correct Answer: A) Increase spending or cut taxes. 10. The total market value of all final goods and services produced within a given period by factors of production owned by a country's citizens, regardless of where the output is produced. A) Net national products. B) Gross national products. C) Net domestic products. D) Gross domestic products. Show Answer Correct Answer: B) Gross national products. 11. An increase in business confidence will cause what change? A) Decrease in AD. B) Increased AS. C) Increase in AD. D) Decrease in AS. Show Answer Correct Answer: C) Increase in AD. 12. If the quantity of money demanded exceeds the quantity supplied: A) The supply-of-money curve will shift to the left. Option 1*. B) The demand-for-money curve will shift to the right. C) The interest rate will rise. D) The interest rate will fall. Show Answer Correct Answer: C) The interest rate will rise. 13. The annual plan for spending by Congress and the President is A) Federal Budget. B) Money supply. C) Recession. D) Fiscal Policy. Show Answer Correct Answer: A) Federal Budget. 14. A period of decline in total output, income, employment, and trade, lasting six months or longer, is defined as a: A) Recession. B) Business cycle. C) Secular trend. D) Trough. Show Answer Correct Answer: A) Recession. 15. Purchases and sales of government securities by the Federal Reserve are called A) Open market operations. B) Federal fund transfers. C) Swap transactions. D) Discount loans. Show Answer Correct Answer: A) Open market operations. 16. Mr. Miedema and his wife venture to Frosty Cove to buy themselves some ice cream. Which component of GDP does this exemplify? A) Net Exports. B) Investment. C) Consumption. D) Government Spending. Show Answer Correct Answer: C) Consumption. 17. What should the "normal" or "acceptable" unemployment rate be? A) 1-10%. B) 2-3%. C) 4-6%. D) 10-12%. Show Answer Correct Answer: C) 4-6%. 18. The availability of money; how quickly you can convert it into cash in your hand is its ..... A) Yield. B) Diversity. C) Liquidity. D) Gratuity. Show Answer Correct Answer: C) Liquidity. 19. A contractionary fiscal policy would NOT involve which of the following? A) Cuts in government spending. B) An attempt to reduce the deficit. C) A tax increase. D) A tax decrease. Show Answer Correct Answer: D) A tax decrease. 20. What type of unemployment happens because of the Business Cycle? A) Frictional. B) Cyclical. C) Unjust. D) Structural. Show Answer Correct Answer: B) Cyclical. 21. ..... is when workers refuse to work in order to force an employer to meet their demands. A) Sweatshop. B) Strike. C) Labor unions. D) Party. Show Answer Correct Answer: B) Strike. 22. Total factor productivity is A) The increase in the accumulation of human capital. B) The rate at which real GDP per capita is increasing. C) The rate of technological progress. D) The rate of economic growth. E) The amount of output that can be produced with a given amount of factor inputs. Show Answer Correct Answer: E) The amount of output that can be produced with a given amount of factor inputs. 23. Which best describes the federal income tax? A) Progressive tax. B) Proportional tax. C) Regressive tax. D) None of above. Show Answer Correct Answer: B) Proportional tax. 24. There are two types of Price Controls:Price Ceilings and Price Floors. What is the difference? A) A Price Ceiling is the maximum price sellers are allowed to charge for a good or service; a Price Floor is the minimum price buyers are required to pay for a good or service. B) A Price Floor is the maximum price sellers are allowed to charge for a good or service; a Price Ceiling is the minimum price buyers are required to pay for a good or service. Show Answer Correct Answer: A) A Price Ceiling is the maximum price sellers are allowed to charge for a good or service; a Price Floor is the minimum price buyers are required to pay for a good or service. 25. What will result from rising unemployment in an economy? A) The government's budget deficit will fall. B) Any existing inflationary pressure will be reduced. C) Output will increase. D) The economy's potential output (with full employment) will increase. Show Answer Correct Answer: B) Any existing inflationary pressure will be reduced. 26. Whics of the studies below are included in macroeconomics studies? A) Export & Import, Balance Sheet, National Income, Aggregate Income. B) Aggregate Expenditure, Inflation, Deflation. C) Monetary Policy, Fiscal Policy, Unemployment Rate. D) All the answers are correct. Show Answer Correct Answer: D) All the answers are correct. 27. Which of the following is an abbreviation for the quantity of money in a broad sense? A) With. B) What. C) M1. D) Mch. Show Answer Correct Answer: B) What. 28. There are levels of unemployment. Someone who was looking for work but gave up trying is ..... A) Underemployed. B) A quitter. C) A high school dropout. D) Discouraged worker. Show Answer Correct Answer: D) Discouraged worker. 29. Which of the following is not in the labor force? A) Charles, who wants to work but has given up looking for work until the weather improves. B) Mary, who works part-time but wishes for work full time. C) John, who has a graduate degree but is working as a waiter. D) Carl, who does not have work but applied for work at a local factory. E) Melissa, who just graduated from business school and is currently seeking employment as an accountant. Show Answer Correct Answer: A) Charles, who wants to work but has given up looking for work until the weather improves. 30. The M2 measurement of the money supply includes ..... A) Certificates of Deposit. B) Cash and Coin in Ciruclation. C) Demand Deposits. D) All of the Above. Show Answer Correct Answer: D) All of the Above. ← 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