This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 90 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 90 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The idea that countries should only reduce their own tariffs if other countries reduce theirs is an argument put forward by those who favour: A) Free trade. B) Closed economies. C) Strategic trade. D) Fair trade. Show Answer Correct Answer: D) Fair trade. 2. Unchecked breeding of man causes population to grow by geometrical progression while the food supply cannot grow so rapidly only an arithmetical rate of increase. A) Two factor theory. B) Theory of money. C) Malthusian Theory. D) Laissez Faire theory. Show Answer Correct Answer: C) Malthusian Theory. 3. High rates of unemployment: A) Indicate that society is not using a large portion of the talent and skills of its people. B) Are associated with higher price levels. C) Always correspond to a decrease in nominal GDP. D) Do not affect an economy's output of goods and services. Show Answer Correct Answer: A) Indicate that society is not using a large portion of the talent and skills of its people. 4. Any point inside a production possibilities curve is A) Better than points on the production possibilities curve. B) Allocatively efficient but technologically inefficient. C) Associated with inefficient use or unemployment of some resources. D) Associated with movements along the production possibilities curve. E) Associated with constant opportunity costs. Show Answer Correct Answer: C) Associated with inefficient use or unemployment of some resources. 5. Which of the following is an example of globalization? A) Toyota cars being sold in the US. B) A KFC location in Tennessee. Show Answer Correct Answer: A) Toyota cars being sold in the US. 6. Which one of the following is NOT a sector in the European Union's national accounting conventions? A) The government sector. B) The households sector. C) The service sector. D) The nonfinancial corporations sector. E) The financial corporations sector. Show Answer Correct Answer: C) The service sector. 7. People will want to hold less money if the price level A) Or the interest rate increases. B) Or the interest rate decreases. C) Increases or the interest rate decreases. D) Decreases or the interest rate increases. Show Answer Correct Answer: D) Decreases or the interest rate increases. 8. If the Federal Reserve System wanted to stimulate the U.S. economy and reduce unemployment, it would A) Cause interest rates to decrease because low interest rates encourage businessgrowth and expansion. B) Cause interest rates to rise because high interest rates encourage business growthand expansion. C) Increase the discount rate it charges banks, which would increase the money supply. D) Increase consumer spending by reducing the money supply. Show Answer Correct Answer: A) Cause interest rates to decrease because low interest rates encourage businessgrowth and expansion. 9. A tax for which the percentage of income paid in taxes decreases as income increases is? A) Sales tax. B) Progressive tax. C) Proportaional tax. D) Regressive tax. Show Answer Correct Answer: D) Regressive tax. 10. The free market can't produce everything we need as a society, so the government still has a role to play (like providing police officers and bridges.) A) True. B) False. Show Answer Correct Answer: A) True. 11. Prior to the pandemic, we had over 5, 000 open jobs in Broome County but not the skilled people to fill them. This is an example of A) Structural unemployment. B) Frictional unemployment. C) Cyclical unemployment. D) Seasonal unemployment. Show Answer Correct Answer: A) Structural unemployment. 12. Total National Income (TNI) consists of Employee Income (KEM), Government Income (KG), Entrepreneur Income (KE) and..... A) Corporate Income (KK). B) Government Revenue (KP). C) Farmer's Income (KM). D) Income of OFWs (KO). Show Answer Correct Answer: A) Corporate Income (KK). 13. Which of the following is a cause of hyperinflation? A) Rapid growth of real gross domestic product. B) Rapid growth of the money supply. C) Unanticipated decrease in aggregate demand. D) Unanticipated increase in aggregate supply. E) Unanticipated rise in real interest rates. Show Answer Correct Answer: B) Rapid growth of the money supply. 14. Unemployment Rate formula A) (Unemployed/ Labor force) * 100. B) (Employed/ Unemployed) * 100. C) (Labor force/ Employed) * 100. D) None of above. Show Answer Correct Answer: A) (Unemployed/ Labor force) * 100. 15. Cami chose to purchase a new sweater for $ 40. Her tradeoffs include A) The pants or shoes she could have purchased with the $ 40. B) The purse she purchased to go with the sweater. C) The movie she was late too because she was shopping. D) The $ 40. Show Answer Correct Answer: A) The pants or shoes she could have purchased with the $ 40. 16. The federal minimum wage increases by $ 1 today. How is it reflected in a graph that shows the supply of fast food laborers? A) Curve shifts to the left. B) Movement along the curve to the right. C) Movement along the curve to the left. D) Curve shifts to the right. Show Answer Correct Answer: A) Curve shifts to the left. 17. When Ford decides to produce more hybrid cars that run on both gas and electricity, it directly answers the ..... question. A) How. B) What. C) For whom. D) Why. Show Answer Correct Answer: B) What. 18. The three main economic resources are: A) Land, labor, and stocks. B) Land, labor, and capital. C) Land, capital, and bonds. D) Land, labor, and money. Show Answer Correct Answer: B) Land, labor, and capital. 19. Real GDP totals the dollar value for of all goods and services within border of a given country using their current prices during the year they were produced A) True. B) False. Show Answer Correct Answer: B) False. 20. Raising or lower the ....., or how much cash a bank has to keep on hand, is a tool of monetary policy. A) Discount rate. B) Reserve requirement. C) Dunkin' donuts. D) Open market operation. Show Answer Correct Answer: B) Reserve requirement. 21. The velocity of money is affected by which of the following? * A) How quickly the treasury prints new money. B) If a consumer makes purchases with large bills or smaller bills. C) If workers are paid weekly, bi-weekly, or monthly. D) If a consumer uses a payment plan to purchase something or pays outright. Show Answer Correct Answer: C) If workers are paid weekly, bi-weekly, or monthly. 22. ..... refers to the total value of final goods and services which all the sectors of an economy are planning to buy at a given level of income during a period of one accounting year. A) Aggregate demand. B) Aggregate supply. Show Answer Correct Answer: A) Aggregate demand. 23. Sometimes a nation will not trade with a nation who creates products using child labor because they believe in protecting A) Human Rights. B) Domestic Jobs. C) National Defense. D) The Environment. Show Answer Correct Answer: A) Human Rights. 24. Which of the following terms refers to the average increase of prices across and economy in a given month or year? A) Deflation. B) Unemployment. C) Hyperinflation. D) Inflation. Show Answer Correct Answer: D) Inflation. 25. Deflation is likely due to menu costs A) True. B) False. Show Answer Correct Answer: B) False. 26. The equilibrium price of a good occurs if the A) Quantity of the good demanded equals the quantity of the good supplied. B) Quantity of the good demanded is greater than the quantity of the good supplied. C) Quantity of the good demanded is less than the quantity of the good supplied. D) Demand for the good is greater than the supply of the good. E) Price of the good seems reasonable to most buyers. Show Answer Correct Answer: A) Quantity of the good demanded equals the quantity of the good supplied. 27. Which cause of economic growth would involve the least cost for present and future generations of a country's population? A) Increased exploitation of a country's mineral resources. B) Technological innovations in productive processes. C) Investment financed by high rates of domestic savings. D) Investment financed by borrowing from abroad. Show Answer Correct Answer: B) Technological innovations in productive processes. 28. Keynesian Theory Is What? A) Sticky wages prevents wages from falling. Government should take policy action. B) Price levels change the purchasing power which also effects spending. C) Price levels and economy will fix itself without government involvement. D) Price levels increase, so lenders need to charge higher interest rates. This then decreases investment spending. Show Answer Correct Answer: A) Sticky wages prevents wages from falling. Government should take policy action. 29. When taxes are increased, disposable income ....., and hence, consumption ..... A) Increases; decreases. B) Increases; increases. C) Stays the same. D) Decreases; decreases. E) Decreases; increases. Show Answer Correct Answer: D) Decreases; decreases. 30. Workers who are unemployed because they lack the skills needed by employers are called A) Frictionally unemployed. B) Cyclically unemployed. C) Seasonally unemployed. D) Structurally unemployed. Show Answer Correct Answer: D) Structurally unemployed. ← 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