This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 93 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 93 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The Federal Reserve does have an explicit inflation target of 2% per year A) True. B) False. Show Answer Correct Answer: B) False. 2. Something that makes people want to produce more goods and services A) Inflation. B) Macroeconomics. C) Incentives. D) GDP. Show Answer Correct Answer: C) Incentives. 3. Flexible income receivers and borrowers are the ..... helped by inflation. A) Least. B) Most. Show Answer Correct Answer: B) Most. 4. The taxing and spending policies of the president and Congress are known as A) Fiscal policy. B) Revenue policy. C) Monetary policy. D) Recession policy. Show Answer Correct Answer: A) Fiscal policy. 5. The common relationship that a higher price leads to greater quantity supplied and a lower price leads to a lower quantity supplied, while all other variables are held constant A) Quantity supplied. B) Law of demand. C) Law of supply. D) Quantity demanded. Show Answer Correct Answer: C) Law of supply. 6. What does M represent in calculating net imports? X-M A) Imports. B) Exports. C) Taxes. D) None of the Above. Show Answer Correct Answer: A) Imports. 7. Imagine you are an economist studying the cost of living in a typical urban area. You decide to measure the price of a standard group of goods that a typical consumer in this area would buy. What is the name of this price index? A) Consumer Price Index. B) Inflation. C) Gross Domestic Product. D) Unemployment. Show Answer Correct Answer: A) Consumer Price Index. 8. Indonesia that opens its trade to other countries through import and export would be considered a country that adopts ..... A) A closed economy. B) An open economy. Show Answer Correct Answer: B) An open economy. 9. What is possible dissadvatage of economic growth? A) A depletion of non-renewable resources. B) A reduction in the government's ability to reduce poverty. C) A reduction in the productive capacity of the economy. D) An increase in unemployment. Show Answer Correct Answer: A) A depletion of non-renewable resources. 10. Which of the following is not part of market-based supply-side policies? A) Removing market imperfections such as excessive trade union power. B) Removing restrictive trade practices of monopolies and oligopolies. C) Creating incentives to work by establishing the most efficient rates of direct tax. D) Increasing the investment in a country's infrastructure to boost its productive capacity. Show Answer Correct Answer: D) Increasing the investment in a country's infrastructure to boost its productive capacity. 11. The ..... is the primary monetary policy making body of the FED. A) FOMC. B) 12 District Banks. C) Thrift Advisory Council. D) Board of Governors. Show Answer Correct Answer: A) FOMC. 12. TRUE or FALSE:The aggregate demand (AD) curve plots the relationship between interest rates and aggregate demand. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 13. When is the fiscal year? A) January 1-December 31. B) April 15-April 14. C) October 1-September 30. D) None of above. Show Answer Correct Answer: C) October 1-September 30. 14. Which of the following scenarios would allow a bank to loan out more money? A) The Federal Reserve raises the reserve requirement. B) The Federal Reserve lowers the reserve requirement. Show Answer Correct Answer: B) The Federal Reserve lowers the reserve requirement. 15. Mr. Alex, age 70, is a customer of Bank Muscat. Suppose, he submitted a will to the bank and the bank executed the same after their death. Which agency function the bank is performing here? A) Trustee. B) Executor. C) Trustee and executor. D) Principal and agent. Show Answer Correct Answer: C) Trustee and executor. 16. The followings are the objectives of taxation EXCEPT ..... A) Equitable distribution of income. B) Involves penalty for non-payment. C) Reduction of harmful consumption. D) Conservation of resources. Show Answer Correct Answer: B) Involves penalty for non-payment. 17. If inflation increases from 2% to 5%, the money demand curve will: A) Be unaffected. B) Shift to the right. C) Shift to the left. D) Remain constant, but the quantity of money demanded will decrease. E) Remain constant, but the quantity of money demanded will increase. Show Answer Correct Answer: B) Shift to the right. 18. Who benefits from unanticipated inflation? A) Borrowers. B) Savers. C) Retirees. D) College Students. Show Answer Correct Answer: A) Borrowers. 19. Which is the smallest measure of money supply? A) M2. B) M3. C) M1. D) M4. Show Answer Correct Answer: C) M1. 20. Oil is this type of scarce resource. A) Human Capital. B) Land/Natural. C) Labor. D) Physical Capital. Show Answer Correct Answer: B) Land/Natural. 21. Imagine you are the head of a central bank. You decide to alter the supply of money by buying and selling government securities. What is this process called? A) Open Market Operations. B) Discount Rate. C) Expansion. D) Trough. Show Answer Correct Answer: A) Open Market Operations. 22. Which of the following did NOT contribute to the rise of unions? A) Child Labor. B) Dangerous conditions in factories. C) Increased immigration to the urban centers of the Northeast. D) Government policies giving more power to workers. Show Answer Correct Answer: D) Government policies giving more power to workers. 23. Economic agents include: A) Government. B) Consumers. C) Producers. D) All of these. Show Answer Correct Answer: D) All of these. 24. According to the Keynesian view of macroeconomics, what should be the role of the government as far as economic policy? A) The government should maintain a fixed interest rate. B) The government should try to raise the AS curve. C) The government should not intervene in the economy. D) The government should keep the growth rate of the money supply stable. E) The government should try to stabilize the AD curve. Show Answer Correct Answer: E) The government should try to stabilize the AD curve. 25. Advising a corporation about an investment proposal A) Macroeconomics. B) Microeconomic. Show Answer Correct Answer: B) Microeconomic. 26. A Monetary History of the United States, 1867-19602.Made the "Free to Choose" video series and yes selling companion book (1980) 3. Won the Nobel Prize in Economics, 1976 A) Milton Friedman. B) Friedrich Hayek. C) Karl Marx. D) Adam Smith. Show Answer Correct Answer: A) Milton Friedman. 27. Jordan has a fixed interest rate of 6% on her 20 year mortgage. Which statement demonstrates the effect of unanticipated inflation on Jordan's ability to repay her loan? A) She gains because she is repaying the loan with money that has less purchasing power than the money she borrowed. B) She loses because her interest rate will rise when there is more inflation. C) She gains because the loan will now take less time to repay the mortgage. D) She loses because the bank will now expect her to repay the balance of the loan immediately. Show Answer Correct Answer: A) She gains because she is repaying the loan with money that has less purchasing power than the money she borrowed. 28. All the followings are examples of direct tax EXCEPT ..... A) Stamp duties. B) Company tax. C) Services tax. D) Personal income tax. Show Answer Correct Answer: C) Services tax. 29. Consumption function in Solow model A) C=(1-s)y or c=(1-s)f(k). B) C=(1-s)y or c=(1-s)sf(k). C) C=(s-1)y or c=(1-s)f(k). D) None of above. Show Answer Correct Answer: A) C=(1-s)y or c=(1-s)f(k). 30. ..... is the study of economics from the viewpoint of the entire economy. A) Macroeconomics. B) Microeconomics. C) Normative economics. D) Descriptive economics. Show Answer Correct Answer: A) Macroeconomics. ← 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