This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 87 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 87 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The General Theory of Employment. Interest and Money 2. Keynesian Economics3. the " Keynesian Consensus" A) Milton Friedman. B) John Maynard Keynes. C) Friedrich Hayek. D) Karl Marx. Show Answer Correct Answer: B) John Maynard Keynes. 2. Which of the following is included in the calculation of personal income, but not national income? A) Corporate dividend. B) Undistributed corporate profits. C) Social security contribution. D) Transfer payment. Show Answer Correct Answer: D) Transfer payment. 3. Listing the factors of production for starting a business addresses which basic economic questions? A) How to produce?. B) What to produce?. C) How much to produce?. D) For whom to produce?. Show Answer Correct Answer: A) How to produce?. 4. Which of the following is NOT a determinant of supply? A) Change in number of consumers. B) Change in cost of production. C) Government regulations. D) Technology. Show Answer Correct Answer: A) Change in number of consumers. 5. The amount of money that the public wants to hold in the form of cash will A) Be unaffected by any change in interest rates or the price level. B) Decrease if the price level remains constant. C) Decrease if interest rates increase. D) Increase if the price level decreases. E) Increase if interest rates increase. Show Answer Correct Answer: C) Decrease if interest rates increase. 6. The part of economics concerned with large scale or general economic factors, such as interest rates, the Federal Reserve conducing monetary policy, the Federal Government conducting fiscal policy, the unemployment rate, and GDP per capita? A) Macroeconomics. B) Microeconomics. Show Answer Correct Answer: A) Macroeconomics. 7. When the money supply is increased, which is MOST likely to happen? A) Each dollar will be able to buy more goods. B) The price level will increase. C) The price level will decrease. D) The price level will not be affected. Show Answer Correct Answer: B) The price level will increase. 8. In the formula C + I + X + X-M, what does "M" represent? A) Monetary policy. B) Imports. C) Money supply. D) Marginal propensity to consume. Show Answer Correct Answer: B) Imports. 9. Goods that are often use together so that consumption of one good tends to enhance consumption of the other Ex:Cereal and Milk, DVDs and DVD player, Golfing and Golf Balls A) Inferior Good. B) Complement Good. C) Substitute Good. D) Normal Good. Show Answer Correct Answer: B) Complement Good. 10. Which of the following is not concerned with Macroeconomics? A) National Income Accounting. B) International Trade. C) Individual Firm. D) Inflation. Show Answer Correct Answer: C) Individual Firm. 11. Which of the following is NOT part of GDP: A) A used TV on Craigslist. B) A teacher working in the classroom. C) A new car that is sold. D) No answer. Show Answer Correct Answer: A) A used TV on Craigslist. 12. Suppose, the reserve ratio equals rr=4%. What is the money multiplier? A) 25. B) 4. C) 104%. D) 20. Show Answer Correct Answer: A) 25. 13. Which combination of fiscal policies would be considered the most expansionary? A) Increase in government spending and taxes. B) Decrease in government spending and taxes. C) Decrease in government spending and an increase in taxes. D) Increase in government spending and a decrease in taxes. Show Answer Correct Answer: D) Increase in government spending and a decrease in taxes. 14. Which one is true about output function in Solow Model? A) Y = f(K$\alpha$, AL$\beta$). B) Y = f(k$\alpha$). C) Y = f(K, AL). D) Y = F(K, AL). Show Answer Correct Answer: D) Y = F(K, AL). 15. Is Tennessine a real element? A) No. B) Yes. C) I have no clue. D) None of above. Show Answer Correct Answer: B) Yes. 16. Foreign cars are subject to an additional tax in order to make them more expensive than American made cars. This tax is called a ..... A) Tariff. B) Embargo. C) Trade Agreement. D) None of the above. Show Answer Correct Answer: A) Tariff. 17. Which graph trades off unemployment with inflation? A) Loanable Funds. B) Money Market. C) Phillips Curve. D) Production Possibilities. Show Answer Correct Answer: C) Phillips Curve. 18. A balance sheet ..... A) Includes all liabilities on the right-hand side. B) Is a double-entry accounting device. C) Includes all assets on the left-hand side. D) Both (a) and (c) are correct, but (b) is incorrect. E) All three of (a), (b), and (c) are accurate statements. Show Answer Correct Answer: E) All three of (a), (b), and (c) are accurate statements. 19. The value of the multiplier will increase if A) The MPS decreases. B) Induced investment increases. C) Autonomous investment increases. D) The MPC decreases. Show Answer Correct Answer: A) The MPS decreases. 20. One reason aggregate demand slopes downward is the wealth effect:A decrease in the price level increases the value of money holdings and consumer spending rises A) False. B) True. Show Answer Correct Answer: A) False. 21. How is a corporation different from a sole proprietorship? A) Sole proprietorships have limited liability for the owners. B) Corporations can sell stock to raise money for the business. C) Sole proprietorships require a legal charter to start the business. D) Corporations are owned by only one person. Show Answer Correct Answer: B) Corporations can sell stock to raise money for the business. 22. In 2017 Sabrina earned an annual salary of $ 100, 000 as an engineer. In 2018, her income rose to $ 105, 000. Theinflation rate in 2018 was 2%. How did Sabrina's nominal income and real income change in 2018 compared to2017? A) Nominal income decreased and real income decreased. B) Nominal income decreased and real income did not change. C) Nominal income increased and real income decreased. D) Nominal income increased and real income did not change. E) Nominal income increased and real income increased. Show Answer Correct Answer: E) Nominal income increased and real income increased. 23. If the reserve ratio is 10 percent, banks do not hold excess reserves, and people donot hold currency, then when the BNM purchases RM20 million of governmentbonds, bank reserves A) Increase by RM20 million and the money supply eventually increases byRM200 million. B) Decrease by RM20 million and the money supply eventually increases byRM200 million. C) Increase by RM20 million and the money supply eventually decreases byRM200 million. D) Decrease by RM20 million and the money supply eventually decreases byRM200 million. Show Answer Correct Answer: A) Increase by RM20 million and the money supply eventually increases byRM200 million. 24. In a ..... budget, revenues and expenses are equal. A) Balanced. B) Deficit. C) Surplus. D) None of above. Show Answer Correct Answer: A) Balanced. 25. During an expansion, the Fed should use ..... A) A contractionary policy. B) An expansionary policy. Show Answer Correct Answer: A) A contractionary policy. 26. What would a microeconomist most likely study? A) The relationship between the size of the money supply and the rate of inflation. B) The effects of aggregate consumer debt on overall consumption spending. C) The effects of an income tax reduction on the size of the national budget deficit. D) How consumers respond to a change in gasoline prices. Show Answer Correct Answer: D) How consumers respond to a change in gasoline prices. 27. A monopoly is when: A) One seller/business dominates an industry. B) A few sellers/businesses dominate an industry. C) Supply exceeds demand. D) A business offers special gifts and coupons. Show Answer Correct Answer: A) One seller/business dominates an industry. 28. Which of the following is not classed as capital expenditure? A) Construction of a new airport. B) Purchasing new materials for production. C) Purchasing capital equipment for state-owned enterprise. D) Building of new public roads. Show Answer Correct Answer: B) Purchasing new materials for production. 29. What is a Government Budget DEFICIT? A) When the amount of income received by the government falls short of the amount of expenses paid by the government. B) When the amount of income received by the government exceeds the amount of expenses paid by the government. C) The monetary policy making body of the Federal Reserve System. D) The central bank of the United States. Show Answer Correct Answer: A) When the amount of income received by the government falls short of the amount of expenses paid by the government. 30. A line that shows the relationship between price and quantity supplied on a graph, with quantity supplied on the horizontal axis and price on the vertical axis A) Shortage. B) Social surplus. C) Supply curve. D) Total surplus. Show Answer Correct Answer: C) Supply curve. ← 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