This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 92 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 92 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Increase reserve deposit ratio A) Increase in reserve requirements = lowers m and MSincrease interest rate on reserves = lower m and MS. B) Decrease in reserve requirements = raises m and MSdecrease interest rate on reserves = lower m and MS. C) Increase in reserve requirements = lowers m and MSdecrease interest rate on reserves = raises m and MS. D) Decrease in reserve requirements = raises m and MSdecrease interest rate on reserves = raises m and MS. Show Answer Correct Answer: A) Increase in reserve requirements = lowers m and MSincrease interest rate on reserves = lower m and MS. 2. Which of the following is the best definition of productivity? A) The number of workers in the economy. B) The ratio of total output to total inputs. C) The amount of output a firm produces. D) The quality of a firm's factors of production. Show Answer Correct Answer: B) The ratio of total output to total inputs. 3. What are the four phases of the business cycle? A) Rise, climax, fall, and bottom. B) Upswing, climax, downturn, and bottom. C) Growth, climax, decline, and bottom. D) Expansion, peak, contraction, and trough. Show Answer Correct Answer: D) Expansion, peak, contraction, and trough. 4. Induced savings means when Y increase then S decrease A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 5. A market economy is best defined as A) An economic system with a central authority that makes major economic decisions. B) An economic system in which supply, demand, and the price system help people make economic decisions. C) An Economic system in which private citizens own and use the factors of production in order to generate profits. D) An economic system that has some combination of traditional, command, and market activities. Show Answer Correct Answer: B) An economic system in which supply, demand, and the price system help people make economic decisions. 6. China can make cellphones faster and cheaper than America, therefore America just lets them and focuses on other areas. China is said to have a ..... A) Favorable Balance of Trade. B) Interdependence. C) Unfavorable Balance of Trade. D) Comparative Advantage. Show Answer Correct Answer: D) Comparative Advantage. 7. In the circular flow diagram firms pay wages for which factor of production? A) Land. B) Labor. C) Entrepreneurship. D) Raw materials. Show Answer Correct Answer: B) Labor. 8. Other things being constant, an increase in marginal tax rates will A) Decrease the supply of labor and reduce its productive efficiency. B) Decrease the supply of capital and decrease its productive efficiency. C) Encourage individuals to buy goods that are tax deductible instead of those that are more desired but nondeductible. D) Do all of the above. Show Answer Correct Answer: D) Do all of the above. 9. Macroeconomics is a ..... equilibrium analysis as it studies. A) Partial. B) General. Show Answer Correct Answer: B) General. 10. When a country (like China.) imports LESS goods/services than they export, their net exports will be ..... A) Positive. B) Negative. Show Answer Correct Answer: A) Positive. 11. By what year will China have the world's largest GDP? A) 2028. B) 2100. C) 2092. D) 2022. Show Answer Correct Answer: A) 2028. 12. If the Fed wanted to expand or ease monetary policy, which might they do? A) Increase the interest rate. B) Increase reserves, limiting what banks can loan. C) Lower taxes. D) Decrease the interest rate. Show Answer Correct Answer: D) Decrease the interest rate. 13. Choose the Best Answer.If Jollibee acquires a new piece of land to further extend its fast-food business. Jollibee is spending on what type of business fixed investment? A) Intellectual Property. B) Residential. C) Structures. D) Equipment. Show Answer Correct Answer: C) Structures. 14. Choose the Best Answer.According to Statista research, the average lifespan of smartphones has decreased slightly from 2.75 years in 2021 to 2.58 years in 2023. Given this, smartphones can be considered as what type of good in terms of consumption? A) Nondurable. B) Durable. C) Services. D) None of the above. Show Answer Correct Answer: A) Nondurable. 15. Long run and short run effect of a decrease in M A) SR:output falls and price level remains the sameLR:price level falls and output remains the same. B) SR:output rises and price level remains the sameLR:price level rises and output remains the same. C) SR:price level falls and output remains the sameLR:output falls and price level remains the same. D) SR:price level rises and output remains the sameLR:output rises and price level remains the same. Show Answer Correct Answer: A) SR:output falls and price level remains the sameLR:price level falls and output remains the same. 16. Which of the following is a disadvantage of corporations: A) Unlimited life. B) Unlimited liability. C) Financial power. D) High taxes. Show Answer Correct Answer: D) High taxes. 17. Stock brokers can a portion of the profit they make, this is called A) Interest. B) S&P 500. C) Commission. D) Commutation. Show Answer Correct Answer: C) Commission. 18. The cost of borrowed money, usually expressed as a percentage. A) Scarce. B) Interest. C) Savings plan. D) Purchase. Show Answer Correct Answer: B) Interest. 19. The amount of disposable income that is left after total personal spending in a given period A) Personal saving rate. B) Personal income tax. C) Personal savings. D) Disposable income. Show Answer Correct Answer: C) Personal savings. 20. What type of GDP is calculated with the current year's prices? A) Nominal GDP. B) Real GDP. C) GDP per capita. D) None of above. Show Answer Correct Answer: A) Nominal GDP. 21. What does "IIF" stand for? A) Institute of International Finance. B) Internal Incorporation of Finance. C) International Igloo Farm. D) Inclusive Intelligence Factors. Show Answer Correct Answer: A) Institute of International Finance. 22. In a recession, GDP A) Shrinks. B) Grows rapidly. C) Grows slowly. D) Grows by 0%. Show Answer Correct Answer: A) Shrinks. 23. Angus the sheep farmer sells wool to Barnaby the knitter for $ 20. Barnaby makes two sweaters, each of which has a market price of $ 40. Collette buys one of them, while the other remains on the shelf of Barnaby's store to be sold later. What is GDP here? A) $ 40. B) $ 80. C) $ 100. D) $ 60. Show Answer Correct Answer: B) $ 80. 24. A legal maximum price A) Price floor. B) Price ceiling. C) Quantity demanded. D) Quantity supplied. Show Answer Correct Answer: B) Price ceiling. 25. A government may adopt a number of supply-side policies to encourage economic growth. Which of the following is a supply-side policy? A) Lowering interest rates. B) Retraining unemployed workers. C) Reducing direct taxation. D) Increasing the money supply. Show Answer Correct Answer: B) Retraining unemployed workers. 26. A rightward shift in the aggregate demand curve with a horizontal aggregate supply curve will cause employment and the price level to change in which of the following ways? A) Increase Employment; Decrease Price Level. B) Increase Employment; Increase Price Level. C) No Change to Employment, Increase Price Level. D) Increase Employment; No Change to Price Level. Show Answer Correct Answer: D) Increase Employment; No Change to Price Level. 27. The ..... shows the relationship between unemployment and inflation after expectations of inflation have had time to adjust to experience. A) Long-Run Phillips Curve. B) Short-Run Phillips Curve. C) Long-Run Aggregate Supply. D) Long-Run Aggregate Demand. Show Answer Correct Answer: A) Long-Run Phillips Curve. 28. The automatic stabilization effect of fiscal policy refers to the fact that ..... A) Taxes tend to become more regressive during economic expansions. B) Government spending tends to go up during economic expansions. C) Government spending tends to go down during economic expansions. D) Inflation tends to go up during economic expansions. E) Taxes tend to become more progressive during economic expansions. Show Answer Correct Answer: C) Government spending tends to go down during economic expansions. 29. Which of the following would be most interested in a study of supply and demand? A) A historian studying life on the medieval manor. B) A historian studying the origins of communist. C) An economist studying capitalist forces. D) An economist looking at the effectiveness of socialist programs. Show Answer Correct Answer: C) An economist studying capitalist forces. 30. A measuring tool for inflation that calculates the prices of what the average consumer buys ..... A) Aggregate Demand. B) Consumer Price Index. C) Aggregate Supply. D) Market Price. Show Answer Correct Answer: B) Consumer Price Index. ← 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