This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 9 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Another name for a "planned economy" is: A) Traditional. B) Communist. C) China. D) Market. Show Answer Correct Answer: B) Communist. 2. How do you calculate a budget deficit? A) Expenses-revenue. B) Debt-revenue. C) Revenue-expenses. D) Revenue-debt. Show Answer Correct Answer: C) Revenue-expenses. 3. Banks chartered, or licensed, by state governments A) Country Banks. B) National Banks. C) State Banks. D) Local Banks. Show Answer Correct Answer: C) State Banks. 4. The percentage change in quantity of goods and services produced from one year to another is called ..... A) Per Capita Income. B) Gross Domestic Product. C) Growth rate. D) Real income. Show Answer Correct Answer: C) Growth rate. 5. If an economy is experiencing a contraction or recession, what phase of the business cycle would they experience next? A) Expansion. B) Recovery. C) Peak. D) Trough. Show Answer Correct Answer: D) Trough. 6. How much does the product of an economy vary, what is the spending and tax multiplier with the following information? Increase of 100 in the TAIncrease of 100 in the GMarginal propensity to consume of 0.5 A) T multiplier =-1G multiplier =2Change in Y=100. B) T multiplier =-1G multiplier =2Change in Y =-100. C) Multiplier T = 2Multiplier G = 1Change in Y = 100. D) T multiplier =1G multiplier =2Change in Y = 100. Show Answer Correct Answer: A) T multiplier =-1G multiplier =2Change in Y=100. 7. An increase in which of the following would cause the long-run aggregate supply curve to shift to the right? A) Corporate income tax rates. B) Aggregate demand. C) Labor productivity. D) The average wage rate. E) The price level. Show Answer Correct Answer: C) Labor productivity. 8. The phrase "a change in demand" most directly implies a A) Movement along the curve. B) Movement along the price curve. C) Change in quantity demanded of a good. D) Shift in the demand curve. Show Answer Correct Answer: D) Shift in the demand curve. 9. When economists collect statistics on production, income, investment, and savings A) National Income Accounting. B) Expenditures Approach. C) Income Approach. D) Gross Domestic Product. Show Answer Correct Answer: A) National Income Accounting. 10. A surplus budget is one where A) Government revenue is less than government spending. B) Government revenue exceeds government expenditure. C) Spending on imports is less than export earnings. D) Spending on imports exceeds export earnings. Show Answer Correct Answer: B) Government revenue exceeds government expenditure. 11. During the Great Recession of 2008 many realtors and builders lost their jobs because of a slowing economy. What type of unemployment did they experience? A) Seasonal. B) Structural. C) Frictional. D) Cyclical. Show Answer Correct Answer: D) Cyclical. 12. What is the main focus of macroeconomics? A) Studying economic aggregates. B) Calculating market prices. C) Predicting stock market trends. D) Analyzing individual consumer behavior. Show Answer Correct Answer: A) Studying economic aggregates. 13. A country can have an absolute advantage in everything they produce. A) False. B) True. Show Answer Correct Answer: B) True. 14. The real interest rate is the lost opportunity cost of investment. A) Lie. B) True. Show Answer Correct Answer: B) True. 15. Comparing real GDP between two consecutive years is MOST useful in determining which economic measurement? A) Economic growth. B) Exchange rate. C) Equity. D) Equilibrium price. Show Answer Correct Answer: A) Economic growth. 16. What term is used to describe the percent of the labor force that does not have a job but is currently looking for one? A) Full employment. B) Leading economic indicator. C) Workforce. D) Unemployment rate. Show Answer Correct Answer: D) Unemployment rate. 17. Bryce was recently laid off from his job on the auto assembly line. The company is making cutbacks due to fears of an oncoming recession. Bryce is experiencing which type of unemployment? A) Frictional. B) Cyclical. C) Seasonal. D) Structural. Show Answer Correct Answer: B) Cyclical. 18. Interest Rate Effect A) "Sticky Wages" prevents wages from falling. The government should deficit spend to close the gap. B) Price levels effect purchasing power which effects spending. C) When U.S. price levels rise, then GDP decreases due to an increase in imports and a decrease in exports. D) Price levels and economy will fix itself. No Government involvement required. E) When price levels increase, lenders need to charge higher interest rates which decreases consumer and business investment spending. Show Answer Correct Answer: E) When price levels increase, lenders need to charge higher interest rates which decreases consumer and business investment spending. 19. The 12 regionally located reserve banks ..... A) Assists the U.S. Treasury by distributing currency, provides overnight loans to commercial banks, and processes electronic payments. B) Handle all deposits made by federal employees. C) Store 1/12 of the gold used to support the value of the the U.S. dollar. D) Visit other countries to study their banking system looking for opportunities to improve. Show Answer Correct Answer: A) Assists the U.S. Treasury by distributing currency, provides overnight loans to commercial banks, and processes electronic payments. 20. IS-LM model shows the ..... of the goods and money markets A) Separation. B) Integration. C) Closure. D) None of the above. Show Answer Correct Answer: B) Integration. 21. What are the three economic goals every society seeks to accomplish? A) Everyone employed, control inflation, flat economic growth. B) 6% inflation, 10% unemployment, slow economic growth. C) Promote economic growth, full unemployment, limit inflation. D) Full employment, stable prices, economic growth. Show Answer Correct Answer: D) Full employment, stable prices, economic growth. 22. What is not a reason why the average size of families is likely to be greater in developing countries than in developed countries? A) Children offer the prospect of security in old age. B) Government child care support is widely available. C) Means of birth control are less available and more expensive. D) Women are less likely to be part of the workforce. Show Answer Correct Answer: B) Government child care support is widely available. 23. Money is defined as anything that acts as a medium of exchange A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 24. Transfer payment is not included in national income but included in ..... A) Personal Income. B) GNP. C) NNP. D) GDP. Show Answer Correct Answer: A) Personal Income. 25. What is an example of structural unemployment? A) A person who has given up looking for work. B) A person between jobs. C) A VCR repairman who lost their job due to obsolescence. D) A recent college graduate looking for their first job. Show Answer Correct Answer: C) A VCR repairman who lost their job due to obsolescence. 26. Which best describes the components of a fiscal policy? A) Government spending and taxation. B) Consumer spending and productivity. Show Answer Correct Answer: A) Government spending and taxation. 27. Inflation is said to be demand pull if those who buy goods and services desire to purchase goods and services greater than what the economy can produce. A) Inflation. B) Hyperinflation. C) Demand pull inflation. D) Cost push inflation. Show Answer Correct Answer: C) Demand pull inflation. 28. Which are the two sectors in case of two sector model? A) Household and government. B) Household and firm. C) Firm and government. D) None of the above. Show Answer Correct Answer: B) Household and firm. 29. Which of the following studies economics as a whole? A) MACRO ECONOMICS. B) GOVERNMENT. C) RBI. D) MICRO ECONOMICS. Show Answer Correct Answer: A) MACRO ECONOMICS. 30. Quanitity supplied A) The amount of a good or service that a firm is willing and able to supply at a given price. B) Y-axis. C) Limited quantities of resources to meet unlimited wants. D) The actual amount of a good or service consumers are willing to buy at some specific price. Show Answer Correct Answer: A) The amount of a good or service that a firm is willing and able to supply at a given price. ← 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