This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 84 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 84 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not in conflict with macroeconomics goals? A) Budget deficit in balances of payment. B) National income. C) Unemployment. D) Inflation. Show Answer Correct Answer: B) National income. 2. Who is not counted as unemployed? A) Part-time workers. B) People who have given up looking for work. C) Discouraged workers. D) People who want more hours but are part-time. Show Answer Correct Answer: A) Part-time workers. 3. Which of the following is not a problem associated with using GDP per capita as a measure of economic development? A) GDP per capita fails to take into consideration how income, goods and services are shared among the members of an economy. B) GDP per capita fails to take into consideration negative externalities such as pollution associated with economic development. C) GDP per capita fails to take into consideration the value of production used to repay outstanding foreign debt. D) GDP per capita fails to take into account the growing levels of population in developing countries. Show Answer Correct Answer: A) GDP per capita fails to take into consideration how income, goods and services are shared among the members of an economy. 4. Corn Flakes are an inferior good. If minimum wage increases, what will happen in the market for Corn Flakes? A) Rightward shift in supply. B) Leftward shift in supply. C) Rightward shift in demand. D) Leftward shift in demand. Show Answer Correct Answer: D) Leftward shift in demand. 5. What is the Y-axis in the Phillips Curve A) GDP. B) Interest Rate. C) Inflation Rate. D) Unemployment Rate. Show Answer Correct Answer: C) Inflation Rate. 6. What is aggregate demand? A) The demand for goods and services in an economy over a long period of time. B) Total demand for goods and services in an economy at a given time. C) The demand for goods and services in an economy at a specific price level. D) The demand for a specific good or service in an economy at a given time. Show Answer Correct Answer: B) Total demand for goods and services in an economy at a given time. 7. If nominal gross domestic product fell while real gross domestic product rose, which of the following must be true? A) The inflation rate was negative. B) Unemployment increased. C) Nominal interest rates rose by less than the rate of inflation. D) Net exports were negative. E) The average of stock prices rose while bond prices fell. Show Answer Correct Answer: A) The inflation rate was negative. 8. Supply-side policies are aimed mainly at A) Reducing the government's budget deficit. B) Dealing with short-term supply-side shocks to the economy. C) Improving the underlying trend rate of economic growth. D) Combating cyclical unemployment. Show Answer Correct Answer: C) Improving the underlying trend rate of economic growth. 9. The value of the final goods and services produced in a given year expressed in terms of the prices of the same year. A) Real GDP. B) Nominal GDP. C) Net exports of goods and services. D) Gross Domestic Product. Show Answer Correct Answer: B) Nominal GDP. 10. ..... occurs when the central bank sets an explicit target for the inflation rate and sets monetary policy in order to hit that target. A) Inflation Targeting. B) Required Target. C) Contractionary Target. D) Expansionary Target. Show Answer Correct Answer: A) Inflation Targeting. 11. Which is an example of expansionary fiscal policy? A) Cutting taxes. B) Decreasing government spending. C) Reducing production of consumer and capital goods. D) Decreasing the prices of consumer goods. Show Answer Correct Answer: A) Cutting taxes. 12. Which part below is responsible for printing bank notes (paper money) for use in the economic system A) Ministry of Finance. B) Central bank. C) Foreign Commercial Bank of Laos Mass. D) Ministry of Industry and Trade. Show Answer Correct Answer: B) Central bank. 13. A merchant has appointed telemarketers to target senior citizens into buying products and services through false claims. What kind of unfair trade practice is this? A) Misrepresenting a Product. B) Faking Endorsements and Guarantees. C) Giving Misleading Price Information. D) Taking Advantage of Customers. Show Answer Correct Answer: D) Taking Advantage of Customers. 14. Which of the following causes a shift in the short run Phillips curve? A) Any changes to aggregate supply. B) Any changes to aggregate demand. C) Any changes in frictional or structural unemployment. D) All of the above. Show Answer Correct Answer: A) Any changes to aggregate supply. 15. Classification of goods depend on the: A) End-use of goods. B) Production of goods. C) First-use of goods. D) Consumption of goods. Show Answer Correct Answer: A) End-use of goods. 16. In a circular flow of income in a closed economy with government intervention, leakage consists of ..... A) Investment and savings. B) Savings only. C) Savings and taxes. D) Savings, taxes and imports. Show Answer Correct Answer: C) Savings and taxes. 17. A car running between Delhi and Agra at a speed of 120 km/h includes: A) Only stock variables. B) Only flow variables. C) Both a stock and a flow variable. D) None of these. Show Answer Correct Answer: C) Both a stock and a flow variable. 18. The monetary policy tool used by the Federal Reserve System that involves buying or selling of government bonds? A) Open-market operations. B) The reserve requirement. C) Automatic stabilizers. D) The discount rate. Show Answer Correct Answer: A) Open-market operations. 19. Banks create money by A) Exchanging gold for paper currency. B) Printing & issuing paper currency. C) Lending money or making loans. D) Making interest rates on leans higher than those on savings accounts. Show Answer Correct Answer: C) Lending money or making loans. 20. Which of the following could cause a movement along a country's short-run Phillips curve toward higher unemployment and lower inflation? A) A significant reduction in energy prices. B) A recession in the economies of the nation's major trading partners. C) An improvement in technology. D) A decrease in savings by the country's consumers. E) A movement of the economy from the recovery phase to the expansionary phase of the business cycle. Show Answer Correct Answer: B) A recession in the economies of the nation's major trading partners. 21. A decrease in aggregate demand, coupled with an increase in aggregate supply, would tend to A) Increase both real GDP and the price level. B) Decrease both real GDP and the price level. C) Decrease the level of real GDP, but the impact on the price level is indeterminate. D) Decrease the price level, but the impact on real GDP is indeterminate. Show Answer Correct Answer: D) Decrease the price level, but the impact on real GDP is indeterminate. 22. If a company lays off half of its employees during a recession, what can you reasonably conclude? A) Another company wanted to higher the employees. B) The company couldn't afford to pay the employees. C) The employees were overqualified for their jobs. D) The employees were bad at their job. Show Answer Correct Answer: B) The company couldn't afford to pay the employees. 23. Which of the following people would be considered unemployed? A) A person who quits work to care for aging parents. B) A person who stayed home to raise his children and now starts looking for a job. C) A person who is qualified to teach but is driving a bus until a teaching job is available. D) A person who works two part-time jobs but is looking for a full-time job. Show Answer Correct Answer: B) A person who stayed home to raise his children and now starts looking for a job. 24. Tax Multiplier = A) -MPC/MPS. B) -1/MPS. C) MPC/MPS. D) MPC/1. Show Answer Correct Answer: A) -MPC/MPS. 25. What school of economic thought replaced Adam Smith's theory as the predominant body of economic thought in the Western world during the 1930s through the 1960s? A) Keynesian economics. B) Reaganomics. C) Monetarism. D) Supply Side Economics. E) Classical Economics. Show Answer Correct Answer: A) Keynesian economics. 26. It is the insufficiency of the goods within the period. A) Production. B) Scarcity. C) Supply. D) Demand. Show Answer Correct Answer: B) Scarcity. 27. What characterizes a command economy (select all that apply) A) Government makes the decisions. B) Markets relied-upon to perform allocations. C) Reallocation of resources according to need. D) All. Show Answer Correct Answer: A) Government makes the decisions. 28. If the federal government has a balanced budget and enacts contractionary fiscal policy, then A) The demand for loans shifts to the left. B) The demand for loans shifts to the right. C) The supply of loanable funds shifts to the right. D) The supply of loanable funds shifts to the left. Show Answer Correct Answer: C) The supply of loanable funds shifts to the right. 29. The resulting unemployment that hit the coal mining communities of Britain would best be characterized as: A) Frictional unemployment. B) Seasonal unemployment. C) Cyclical unemployment. D) Structural unemployment. Show Answer Correct Answer: D) Structural unemployment. 30. When the household saves, it makes the economy ..... because savings is a LEAKAGE of money from the circular flow. A) Unreasonable. B) Unbalanced. C) Unstable. D) None of above. Show Answer Correct Answer: B) Unbalanced. ← 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