This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 89 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 89 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A college student, who is working part-time will fall under the following employment category. A) Unemployed. B) Not in the Labor Force. C) Employed. D) Full-Time Student. Show Answer Correct Answer: C) Employed. 2. Any action taken by the Federal Reserve that either speeds up or slows down the economy is referred to as ..... ? A) Fiat Currency. B) Insider Trading. C) Currency Policy. D) Monetary Policy. Show Answer Correct Answer: D) Monetary Policy. 3. A central bank will most likely allow the economy to self-correct in periods of: A) High inflation, fast economic growth, and low unemployment. B) Low inflation, slow economic growth, and high unemployment. C) High inflation, slow economic growth, and high unemployment. D) None of above. Show Answer Correct Answer: C) High inflation, slow economic growth, and high unemployment. 4. The U.S. federal income tax is an example of a A) Proportional tax. B) Value-added tax. C) Progressive tax. D) Regressive tax. Show Answer Correct Answer: C) Progressive tax. 5. An economy's gross domestic product is ..... A) Total income and total spending. B) Total spending as a percent of total income. C) The excess of income over spending. D) The excess of spending over income. Show Answer Correct Answer: A) Total income and total spending. 6. Money facilitates the buying and selling of goods and services. What function money is serving here? A) Unit of account. B) Measure of value. C) Medium of exchange. D) Store of value. Show Answer Correct Answer: C) Medium of exchange. 7. Where are factors of production (land, labor, etc) exchanged in the circular flow model? A) Individuals. B) Firms. C) Product Market. D) Factor Market. Show Answer Correct Answer: D) Factor Market. 8. Expansionary fiscal policy would most likely be used during ..... A) Recessions. B) Times where economy is operating at full employment. C) Periods of sustained, demand pull inflation. D) Periods of large positive output gaps in GDP. Show Answer Correct Answer: A) Recessions. 9. What does GDP measure? A) The strength of the economy (economic growth). B) The weaknesses of the economy. C) The gross dumb possums who live under the deck. D) The giant, demanding punk who won't stop picking on my little brother. Show Answer Correct Answer: A) The strength of the economy (economic growth). 10. Understanding how mandatory health insurance will affect small business A) Macroeconomics. B) Microeconomic. Show Answer Correct Answer: B) Microeconomic. 11. What is included in the calculation of GDP? A) The value of all final goods and services produced within a country's borders, excluding intermediate goods and transfer payments. B) The value of all goods and services produced within a country's borders, including intermediate goods and transfer payments. C) The value of all final goods and services produced outside of a country's borders, including intermediate goods and transfer payments. D) None of above. Show Answer Correct Answer: A) The value of all final goods and services produced within a country's borders, excluding intermediate goods and transfer payments. 12. When individuals lose jobs due to a decline in the economy during an economic recession. A) Seasonal Unemployment. B) Frictional Unemployment. C) Cyclical Unemployment. D) Structural Unemployment. Show Answer Correct Answer: C) Cyclical Unemployment. 13. Suppose an economy produces two goods, food and machines, and that it always operates on its PP curve. Last year, it produced 50 units of food and 30 machines. This year it experienced a technological advance in its machine-making industry. As a result, this year the society wants to produce 55 units of food and 30 machines. Which of the following statements is true? A) The technological advance reduced the amount of resources needed to produce 30 machines. Resources thus freed up could be used to produce more food. B) Because the technological advance occurred in the machine-making industry, it will not be possible to increase food production without reducing machine production below 30. C) In order to increase food production in these circumstances without reducing machine production, the economy must reduce inefficiencies. D) Because the technological advance occurred in the machine-making industry, it will not be possible to increase food production without reducing machine production below 30. Show Answer Correct Answer: A) The technological advance reduced the amount of resources needed to produce 30 machines. Resources thus freed up could be used to produce more food. 14. The central bank has increased reserve requirements. What effect will this have on nominal interest rates? A) Interest rates will not change. B) We cannot predict with this information. C) Decrease. D) Increase. Show Answer Correct Answer: D) Increase. 15. Deflation is referred to A) A decrease in the prices of goods and services in an economy. B) An increase in the prices of goods and services in an economy. C) A decrease in the supply of goods and services in an economy. D) An increase in the quantity of goods and services in an economy. Show Answer Correct Answer: A) A decrease in the prices of goods and services in an economy. 16. Which of the following is an example of a normative, as opposed to positive, a statement? A) The federal government obtained much of its revenue from income taxes. B) Negative externalities are a cause of market failure. C) The price of gasoline came down sharply during the second half of 2006. D) Income taxes should be reduced. E) If the government where to set a maximum legal price on gasoline, then there would be a shortage of gasoline. Show Answer Correct Answer: D) Income taxes should be reduced. 17. Which account that included the imported and export goods and services? A) Balance of current account. B) Balance of capital and financial account. C) Overall balance. D) None of above. Show Answer Correct Answer: A) Balance of current account. 18. Growth rate in quantity of money available determines A) The consumers. B) Interest rate. C) Inflation rate. D) None of them. Show Answer Correct Answer: C) Inflation rate. 19. What is not a criterion used to measure welfare in HDI? A) Education. B) Opportunity. C) Standard of living. D) Health and life expectancy. Show Answer Correct Answer: B) Opportunity. 20. A tax where all people pay the same percentage of their income or wealth. Property taxes are an example of this. A) Progressive tax. B) Proportional tax. C) Regressive tax. D) Monetary policy. E) Fiscal policy. Show Answer Correct Answer: B) Proportional tax. 21. According to monetarist theory, what happens if the money supply increases more rapidly than real output? A) Nominal output decreases. B) Deflation occurs. C) Inflation occurs. D) The velocity of money increases. E) The velocity of money decreases. Show Answer Correct Answer: C) Inflation occurs. 22. There are 3 types of unemployement; Cyclical, Frictional and Structural. A) True. B) False. Show Answer Correct Answer: A) True. 23. Unemployment caused by an imbalance between the skills of workers and the requirements of employers. These workers need more education and training to be employable. A) Employed. B) Structural unemployment. C) Cyclical unemployment. D) Frictional unemployment. Show Answer Correct Answer: B) Structural unemployment. 24. What does Net Exports indicate in the context of macroeconomics? A) Total consumer spending on imports. B) Total government spending on exports. C) Total imports minus total exports. D) Total exports minus total imports. Show Answer Correct Answer: D) Total exports minus total imports. 25. The costs of changing prices. A) Opportunity costs. B) Shoeleather costs. C) Money illusion. D) Menu Costs. Show Answer Correct Answer: D) Menu Costs. 26. If the price rate doubles A) The quantity demanded of money falls by half. B) The value of money has been reduced by half. C) Nominal income is unaffected. D) Real income doubles. Show Answer Correct Answer: B) The value of money has been reduced by half. 27. Which of the following does the US spend the most money on? A) Health care. B) Defense. C) International affairs. D) Education. Show Answer Correct Answer: B) Defense. 28. The consumer price index was 124 in year 2000 and 130.7 in year 2001. The rate of inflation in the year 2001 was A) 3.2%. B) 6.7%. C) 5.4%. D) 13.6%. Show Answer Correct Answer: C) 5.4%. 29. Federal Income tax is a ..... tax A) Flat. B) Regressive. C) Proportional. D) Progressive. Show Answer Correct Answer: D) Progressive. 30. Savings accounts and other similar time deposits that cannot be used as a medium of exchange but can be converted into cash relatively easily. money is what can be immediately used for transactions. A) Near Money. B) Currency. C) Money. D) Wages. Show Answer Correct Answer: A) Near Money. ← 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