This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 91 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 91 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The total number of units of a good or service companies/ firms are willing to sell at a given price A) Supply. B) Quantity supplied. C) Quantity demanded. D) Shortage. Show Answer Correct Answer: B) Quantity supplied. 2. Which of the following is a semi-durable good? A) Clothes. B) Petrol. C) Radio. D) Milk. Show Answer Correct Answer: A) Clothes. 3. When there is inflation in an economy which is ALWAYS true? A) The purchasing power of the dollar increases. B) The consumer price index has increased. C) Unemployment will automatically decrease. D) Exports to other countries increases. Show Answer Correct Answer: B) The consumer price index has increased. 4. The circular flow model shows the A) Distribution of income and consumption goods across income levels. B) Combinations of the factors of production needed to produce goods and services. C) Flow of expenditure and incomes that arise from the households' and business' decisions. D) Distribution of income to the different factors of production. Show Answer Correct Answer: C) Flow of expenditure and incomes that arise from the households' and business' decisions. 5. Which is NOT a function of the Federal Reserve System? A) Collecting taxes. B) Supervising and regulating banks. C) Creating monetary policy. D) Distributing currency. Show Answer Correct Answer: A) Collecting taxes. 6. The fees a franchisee must pay to a parent company to sell their product A) Cooperative. B) Barrier to Entry. C) Glass Ceiling. D) Royalties. Show Answer Correct Answer: D) Royalties. 7. What do businesses provide for consumers according to the circular flow model? A) Goods and services. B) Only goods. C) Only services. D) Taxes. Show Answer Correct Answer: A) Goods and services. 8. If a nation follows a policy of being self-sufficient, its: A) Production possibilities equal its consumption possibilities. B) Consumption possibilities are greater than its production possibilities. C) Production possibilities curve shifts rightward. D) Consumption possibilities are less than its production possibilities. Show Answer Correct Answer: A) Production possibilities equal its consumption possibilities. 9. If a country has a comparative advantage over another country it is said that A) Country A can produce more than Country B. B) Country A should not trade with Country B. C) Country A can produce at a lower opportunity cost than Country B. D) Country A and Country B have no direct relationship to each other. Show Answer Correct Answer: C) Country A can produce at a lower opportunity cost than Country B. 10. A booming economy. Record-low unemployment. A blizzard of pink slips [a note stating that a person has been fired]. What's wrong with this picture? The fact is, even in the best of times hundreds of thousands of people lose their jobs through no fault of their own ..... You might not get any advance warning, so don't be caught off guard. Have an up-to-date resume and networking system ..... You want to be able to launch your job search soon after you get the bad news.Source:Kiplinger's Personal Finance Magazine, September 1998. What type of unemployment does this passage describe? A) Cyclical. B) Seasonal. C) Structural. D) Frictional. Show Answer Correct Answer: D) Frictional. 11. Increase in the average level of prices A) Inflation. B) Deflation. C) Hyperinflation. D) CPI. Show Answer Correct Answer: A) Inflation. 12. ..... occurs when people are in between jobs, entering and reentering the labor force. A) Frictional unemployment. B) Technological unemployment. C) Seasonal unemployment. D) Cyclical unemployment. Show Answer Correct Answer: A) Frictional unemployment. 13. Is based on a typical "market basket" of goods and services purchased by the average household A) GNP. B) Inflation. C) GDP. D) CPI. Show Answer Correct Answer: D) CPI. 14. Which of the following would cause the aggregate demand curve to shift to the left? A) Increase in consumer optimism. B) Increase in transfer payments. C) Increase in the amounts of imports. D) Decrease in the cost of an important input. Show Answer Correct Answer: C) Increase in the amounts of imports. 15. During the 1990s the United Kingdom experience low levels of inflation while turkey experience high levels of inflation. A likely explanation of these facts is that A) The United Kingdom has a better education system and turkey. B) Workers in Turkey are more productive than workers in the United Kingdom. C) There are more instances of market power in Turkey than in the United Kingdom. D) The rate of growth of the quantity of money was slower in turkey than in the United Kingdom. Show Answer Correct Answer: B) Workers in Turkey are more productive than workers in the United Kingdom. 16. Based on the following data:KME-2, 900, 450.00; KE-2, 010, 750.00; KP-1, 900, 475.00; KK-1, 089, 340.00 the Total National Income or TNI is; A) 7, 901, 015.00. B) 8, 079, 015.00. C) 9, 089, 050.00. D) 7, 650, 312.00. Show Answer Correct Answer: A) 7, 901, 015.00. 17. When a person plays loud music late at night, but then their neighbor doesn't get a full night's sleep is an example of: A) Negative Externality. B) Positive Externality. C) An increase in Standard of Living. D) A decrease in Gross Domestic Product. Show Answer Correct Answer: A) Negative Externality. 18. Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded9 A) Inelastic prices. B) Elastic prices. C) Sticky prices. D) Fixed prices. Show Answer Correct Answer: C) Sticky prices. 19. What is the Laspeyres index? A) A price index with a fixed basket of goods. B) A price index with a changing basket of goods. C) A measure of the cost of living. D) A measure of the increase in the price level. Show Answer Correct Answer: A) A price index with a fixed basket of goods. 20. In which part of the GDP calculation does this fit?The local taxi service purchases new vehicles for the company. A) Net exports. B) Government spending. C) Consumer spending. D) Investment spending. Show Answer Correct Answer: D) Investment spending. 21. Which type of market results in stock prices rising? A) Bear Market. B) Bull Market. Show Answer Correct Answer: B) Bull Market. 22. Which of the following best illustrates the unit of account function of money? A) You list prices for candy sold on your Web site, www.sweettooth.com, in RMs. B) You pay for your WNBA tickets with RMs. C) You keep RM10 in your backpack for emergencies. D) None of the above is correct. Show Answer Correct Answer: A) You list prices for candy sold on your Web site, www.sweettooth.com, in RMs. 23. The ..... slopes upwards because higher price levels will raise domestic output. A) Aggregate demand curve. B) Aggregate supply curve. C) Demand curve. D) None of the above. Show Answer Correct Answer: B) Aggregate supply curve. 24. When a nation's imports exceed its exports and is calculated as imports-exports A) Gross domestic product. B) Inventory. C) Trade deficit. D) Trade surplus. Show Answer Correct Answer: C) Trade deficit. 25. The four factors of production are land, capital, labor, and financing. A) True. B) False. Show Answer Correct Answer: B) False. 26. True or false:recessions usually last at least 6 months. A) True. B) False. Show Answer Correct Answer: A) True. 27. Despite the ups and downs of the business cycle, over time, the general trend of the cycle in the United States has been A) Has been a decade of growth followed by a decade of decline. B) Upward sloping showing economic growth. C) Downward sloping showing economic shrinkage. D) Completely flat indicating the economy is still where we were decades ago. Show Answer Correct Answer: B) Upward sloping showing economic growth. 28. When the crowding-out effect of an increase in government purchases is included in the analysis A) AD doesn't change. B) AD shifts rights, but by more than the simple multiplier analysis would imply. C) AD shifts left. D) Ad shifts rights, but by less than the simple multiplier analysis would imply. Show Answer Correct Answer: D) Ad shifts rights, but by less than the simple multiplier analysis would imply. 29. T/F:Microeconomics is the study of the whole economy A) True. B) False. Show Answer Correct Answer: B) False. 30. Addition to the capital stock of an economy is termed as A) All of these. B) Consumption of fixed capital. C) Capital loss. D) Investment. Show Answer Correct Answer: D) Investment. ← 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