This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 98 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 98 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which does NOT describe GDP? A) It stands for Gross Domestic Product. B) It consists of consumption, investment, gov't spending, & net exports. C) It is just one of many ways to measure an economy. D) It focuses on the wealth distribution of a country. Show Answer Correct Answer: D) It focuses on the wealth distribution of a country. 2. The Diamondbacks start winning a lot. What would most likely happen to their ticket prices? A) The ticket prices will decrease. B) The ticket prices will increase. Show Answer Correct Answer: B) The ticket prices will increase. 3. Calculating the price-elasticity of demand in the market for cell phones A) Macroeconomics. B) Microeconomic. Show Answer Correct Answer: B) Microeconomic. 4. The consumer price index measures A) The cost of buying a fixed basket of goods and services, and calculating how this cost changes from year to year. B) The cost of buying a basket of goods and services, which changes from year to year depending on the price level. C) The cost of buying a basket of goods and services, which changes from year to year depending on consumer tastes and preferences. D) All of the above, depending on what the CPI is trying to measure. Show Answer Correct Answer: A) The cost of buying a fixed basket of goods and services, and calculating how this cost changes from year to year. 5. Baby corn used as ingredients in chopsuey is not considered a Final Good? A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 6. What is the main cause of hyperinflation? A) Excessive growth of money. B) Reasonable growth of money. C) Riot or Natural Disaster. D) Money Rush. Show Answer Correct Answer: A) Excessive growth of money. 7. An economy is in recession and the government decides to increase spending by $ 4 billion. The MPC is.8. What would be the full increase in real GDP from the change in government spending? A) $ 3.2 billion. B) $ 16 billion. C) $ 20 billion . D) $ 4 billion. Show Answer Correct Answer: C) $ 20 billion . 8. A diagram showing the income received and payments made by each sector of the economy. A) Circular flow diagram. B) Business cycle. C) Flow diagram. D) Unemployment cycle. Show Answer Correct Answer: A) Circular flow diagram. 9. Which of the following is 'expansionary' fiscal policy? A) Decrease interest rates. B) The Bank of England 'buys' bonds, increasing the money supply. C) Decrease income taxes. D) Decrease spending on the military and defence. Show Answer Correct Answer: C) Decrease income taxes. 10. What is the term for the total value of all goods and services produced within a country's borders in a specific time period? A) Gross Domestic Product (GDP). B) Net Domestic Product (NDP). C) Net National Product (NNP). D) Gross National Product (GNP). Show Answer Correct Answer: A) Gross Domestic Product (GDP). 11. What is my full name? Hehe ..... A) Nabilah Wonderful. B) Nabilah Hannah Delisha. C) Nabilah Mohammad Kassim. D) Nabilah Blackpick. Show Answer Correct Answer: C) Nabilah Mohammad Kassim. 12. If nominal GDP is $ 3, 200 billion and M1 is $ 800 billion, then velocity is A) 8. B) 0.5. C) 400. D) 2. E) 4. Show Answer Correct Answer: E) 4. 13. Decrease monetary base A) OMO:buy govt bonds to increase quantity of money in circulationdiscount rate:lower the discount rate. B) OMO:sell govt bonds to decrease quantity of money in circulationdiscount rate:lower the discount rate. C) OMO:buy govt bonds to increase quantity of money in circulationdiscount rate:raise the discount rate. D) OMO:sell govt bonds to decrease quantity of money in circulationdiscount rate:raise the discount rate. Show Answer Correct Answer: D) OMO:sell govt bonds to decrease quantity of money in circulationdiscount rate:raise the discount rate. 14. The term 'macro' has been derived from A) Greek word 'makros' which means large. B) English word 'makros' which means large. C) Greek word 'makros' which means small. D) French word 'makros' which means large. Show Answer Correct Answer: A) Greek word 'makros' which means large. 15. A condition facing all societies because there are not enough productive resources to satisfy people's unlimited wants. A) Trade-Off. B) Shortage. C) Scarcity. D) Choice. E) Opportunity Cost. Show Answer Correct Answer: C) Scarcity. 16. One type of specialization is division of ..... A) Labor. B) Product. C) Advantage. D) None of above. Show Answer Correct Answer: A) Labor. 17. Which economic condition is caused by increased unemployment over an extended period of time? A) A contraction phase of the business cycle. B) An expansion phrase of the business cycle. Show Answer Correct Answer: A) A contraction phase of the business cycle. 18. The Federal Reserve Bank's activities are controlled by A) The President. B) Congress. C) The citizens. D) Board of Governors. Show Answer Correct Answer: D) Board of Governors. 19. How does the introduction of forward-looking expectations impact the effectiveness of monetary policy in the IS-LM model? A) Makes the LM curve perfectly elastic. B) Enhances the effectiveness of monetary policy. C) Reduces the effectiveness of monetary policy. D) Has no impact on the effectiveness of monetary policy. Show Answer Correct Answer: B) Enhances the effectiveness of monetary policy. 20. No single economic measure is sufficient to diagnose the health of an economy: A) False. B) True. Show Answer Correct Answer: B) True. 21. A country should reduce its barriers to import from another country if the other country: A) Has some sort of 'unfair' competitive advantage over it. B) Is not willing to reduce its import barriers reciprocally. C) Does not have some sort of 'unfair' competitive advantage over it. D) Is not willing to trade under any condition. Show Answer Correct Answer: C) Does not have some sort of 'unfair' competitive advantage over it. 22. High levels of GDP per capita indicate ..... A) Higher levels of happiness. B) Higher standard of living. C) Equal levels of wealth. D) Self-sufficient communities. Show Answer Correct Answer: B) Higher standard of living. 23. Measures cost by what we give up/forfeit in exchange; measures the value of the forgone alternative A) Opportunity Cost. B) Budget Constraint. C) Opportunity Set. D) Marginal Analysis. Show Answer Correct Answer: A) Opportunity Cost. 24. Real exchange rate is A) The relative price of domestic goods in terms of foreign goods. B) A price of a currency in terms of another currency. C) Used to exchange currencies. D) None of above. Show Answer Correct Answer: A) The relative price of domestic goods in terms of foreign goods. 25. Social insurance payment by employer's is added to A) Personal income. B) Disposable income. C) Compensation of employees. D) All of above. Show Answer Correct Answer: C) Compensation of employees. 26. Which is the following statement is correct in socialistic economy? A) Economic activity is carried out for self interest. B) There should be right to own property. C) Profit is the sole objective of economy. D) There should be equality income in economy. Show Answer Correct Answer: D) There should be equality income in economy. 27. The ..... for a given year is 100 times the ratio of nominal GDP to real GDP that year. A) GDP Deflator. B) Market Basket. C) Inflation Rate. D) Aggregate Price Level. Show Answer Correct Answer: A) GDP Deflator. 28. In terms of products, what do businesses provide for households? A) Income. B) Services. C) Sales. D) Goods. Show Answer Correct Answer: D) Goods. 29. The central bank in the USA that regulates the monetary system A) The IRS. B) Social Security. C) FDIC. D) The FED. Show Answer Correct Answer: D) The FED. 30. Trade policy (restriction on imports) under fixed exchange rates A) Shifts IS* rightcentral bank must sell domestic currency which increases M and shifts LM* right. B) Shifts IS* rightcentral bank must buy domestic currency which increases M and shifts LM* right. C) Shifts IS* leftcentral bank must sell domestic currency which increases M and shifts LM* left. D) Shifts IS* rightcentral bank must buy domestic currency which increases M and shifts LM* left. Show Answer Correct Answer: A) Shifts IS* rightcentral bank must sell domestic currency which increases M and shifts LM* right. ← 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