This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Macroeconomics – Quiz 99 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Macroeconomics Quiz 99 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is most likely to cause an increase in both AD and AS? A) A reduction in the money supply. B) An increase in government spending. C) An increase in capital investment. D) A fall in the exchange rate. Show Answer Correct Answer: C) An increase in capital investment. 2. Inflation is always a cause for concern. A) True. B) False. Show Answer Correct Answer: B) False. 3. Consumption expenditure is not influenced by national income is refers to ..... A) Autonomous saving. B) Induced consumption. C) Autonomous consumption. D) Induced saving. Show Answer Correct Answer: C) Autonomous consumption. 4. To help close an inflationary gap, the government could A) Decrease taxes. B) Run budget surpluses. C) Increase government spending. D) Run budget deficits. Show Answer Correct Answer: B) Run budget surpluses. 5. For every hour past the first hour I workout I get less from the exercise. What economic principle can I apply to better understand this situation? A) Law of averages. B) Law of diminishing marginal utility. C) Law of supply and demand. D) Law of elastic demand. Show Answer Correct Answer: B) Law of diminishing marginal utility. 6. In expansionary monetary policy, government will ..... A) Sell securities, higher legal cash reserves requirement and increase bank rate. B) Decrease government expenditure, increase taxes. C) Increase government expenditure, decrease taxes. D) Purchase securities, lower legal cash reserves requirement, decrease bank rate. Show Answer Correct Answer: D) Purchase securities, lower legal cash reserves requirement, decrease bank rate. 7. Which of the following is an example of a natural resource? Choose the best answer. A) Wood (forests). B) Cars. C) Toothpaste. D) Backpacks. Show Answer Correct Answer: A) Wood (forests). 8. The long-run Phillips curve is A) U-shaped. B) Upward sloping. C) Downward sloping. D) Horizontal. E) Vertical. Show Answer Correct Answer: E) Vertical. 9. National income does not include ..... A) Wages and salaries. B) Rent and Royalty. C) Student scholarship. D) Corporate Tax. Show Answer Correct Answer: C) Student scholarship. 10. True or False:Technology is the technical means for the production of goods and services. A) True. B) False. Show Answer Correct Answer: A) True. 11. The market value of all final goods and services produced within a country in a given time period is the A) Net of Exports minus Imports. B) Wage-Price Spiral. C) Gross Domestic Product. D) Consumer Price Index. Show Answer Correct Answer: C) Gross Domestic Product. 12. What is the primary role of money in the economy? A) It serves as a medium of exchange for goods & services. B) It helps set interest rates at financial institutions. C) It identifies prices in various markets. D) It provides a mechanism to assist foreign trade. Show Answer Correct Answer: A) It serves as a medium of exchange for goods & services. 13. Frictional unemployment is caused by ..... A) Changes in the business cycle. B) Businesses involuntarily laying off their employees. C) Harmful government policies. D) Voluntary employment transitions within an economy. Show Answer Correct Answer: D) Voluntary employment transitions within an economy. 14. If a country's imports are greater than its exports, what is the trade balance called? A) Trade surplus. B) Trade deficit. C) Trade equilibrium. D) Trade gap. Show Answer Correct Answer: B) Trade deficit. 15. Which of the following would the FED us to increase the money supply? A) Print more money. B) Buy bonds/securities. C) Raise the required reserves. D) Raise the discount rate. Show Answer Correct Answer: B) Buy bonds/securities. 16. Which of the variables below is used in inflation calculations? A) GDP. B) FDI. C) HDI. D) CPI. Show Answer Correct Answer: D) CPI. 17. Which is the knowledge and skills that enable workers to be productive A) Human Capital. B) Wages. C) Wage Rate. D) Derived Demand. Show Answer Correct Answer: A) Human Capital. 18. As income rises from $ 50, 000 to $ 60, 000, consumption increases from $ 40, 000 to $ 48, 000. In this case, what is the MPC? A) 0.80. B) 0.90. C) 0.10. D) 0.20. Show Answer Correct Answer: A) 0.80. 19. Changes in real GDP are used to measure A) Inflation. B) The level of employment. C) The distribution of income. D) Economic growth. Show Answer Correct Answer: D) Economic growth. 20. A mismatch between the geographic location of workers and the location of job openings would result in which type of unemployment? Select one: A) Wait. B) Cyclical. C) Frictional. D) Structural. Show Answer Correct Answer: D) Structural. 21. How many sections does the Keynesian aggregate supply curve have? A) 5. B) 2. C) 1. D) 4. E) 3. Show Answer Correct Answer: E) 3. 22. The IS curve will shift to the right when which of the following occurs? A) An increase in the money supply. B) An increase in government spending. C) A reduction in the interest rate. D) None of the above. Show Answer Correct Answer: B) An increase in government spending. 23. Products that are purchased by their end users A) Final goods. B) The best products. C) Intermediate goods. D) Complete goods. Show Answer Correct Answer: A) Final goods. 24. The furniture in your home is from France, the tea you drink is from Britain, and the clothes you wear are made in Italy. Last year your lumber company sold and shipped many materials to Portugal. Which of the following is true about the economy in which you live? A) It relies on the buying and selling of one product. B) It relies solely on agriculture. C) It relies heavily on trade and commerce. D) It relies on government control. Show Answer Correct Answer: C) It relies heavily on trade and commerce. 25. ISLM model explains AD curve in closed economy, Mundell Fleming model explains AD curve for a small open economy A) False. B) True. Show Answer Correct Answer: B) True. 26. Which condition must be met for economic efficiency to be achieved? A) Marginal social costs are zero in the production of all goods. B) Marginal social costs are at a minimum in the production of all goods. C) Marginal social benefits are at a maximum in the production of all goods. D) Marginal social costs equal marginal social benefits in the production of all goods. Show Answer Correct Answer: D) Marginal social costs equal marginal social benefits in the production of all goods. 27. All other things being equal, which one of the following combinations is most likely to have the effect of shifting the short-run aggregate supply curve for the economy to the left? A) Falling exchange rate and rising taxes on business profits. B) Rising exchange rate and falling taxes on business profits. C) Falling exchange rate and falling taxes on business profits. D) Rising exchange rate and rising taxes on business profits. Show Answer Correct Answer: A) Falling exchange rate and rising taxes on business profits. 28. Which of the following will most likely decrease the unemployment rate? A) Workers become discouraged and drop out of the labor force. B) Workers lose jobs when their skills become obsolete. C) Workers switch from full-time to part-time jobs. D) Workers are not allowed to work from home. E) Workers continue to work after reaching the retirement age. Show Answer Correct Answer: A) Workers become discouraged and drop out of the labor force. 29. Which person below would not be counted in the labor force? A) Carl, whose parents shut down the family farm. B) Cindy, who quit her job to become a full time student. C) Clayton, who has recently entered the labor force. D) Cory whose skills are no longer in demand. Show Answer Correct Answer: B) Cindy, who quit her job to become a full time student. 30. The GDP Equation A) GDP= C + R + N + (X-M). B) GDP= C + I + G + (X-M). C) GDP= C + I + G + (M-X). D) GDP = C + I + N + (X-M). Show Answer Correct Answer: B) GDP= C + I + G + (X-M). ← 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