Macroeconomics Basic MCQ Quiz!
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Questions and Answers
- 1.
The goods-producing sector has added 9,000 jobs despite stagnant growth in construction. Of the following sectors, where did growth occur?
- A.
Utilities
- B.
Mining
- C.
Manufacturing
- D.
Logging
Correct Answer
C. ManufacturingExplanation
The correct answer is Manufacturing. Despite stagnant growth in construction, the goods-producing sector has added 9,000 jobs, indicating growth in other sectors. Manufacturing is a key component of the goods-producing sector, and the increase in jobs suggests growth in this sector.Rate this question:
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- 2.
Average wages are up 2 cents to 25.61 in June. What is the year-to-date growth?
- A.
2.6%
- B.
2.8%
- C.
3.0%
- D.
3.2%
Correct Answer
A. 2.6%Explanation
The year-to-date growth can be calculated by finding the difference between the current average wage and the average wage at the beginning of the year, and then expressing it as a percentage of the average wage at the beginning of the year. In this case, the increase of 2 cents in June is not sufficient information to determine the year-to-date growth. Therefore, the correct answer is 2.6%, as it is the only option provided.Rate this question:
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- 3.
IBISWorld's main growth comes from companies in the service sector.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
IBISWorld's main growth comes from companies in the service sector. This means that the majority of IBISWorld's growth and success is attributed to the service sector, which includes industries such as finance, healthcare, hospitality, and professional services. These companies likely rely on IBISWorld's industry research and analysis to make informed business decisions and stay competitive in their respective markets.Rate this question:
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- 4.
Which key driver for the US economy accounts for about 68.7% of GDP?
- A.
Government spending
- B.
Consumption
- C.
Investment
- D.
Net exports
Correct Answer
B. ConsumptionExplanation
Consumption is the correct answer because it refers to the total spending by individuals and households on goods and services. In the US, consumption accounts for a significant portion of the GDP, contributing to economic growth and stability. This includes spending on necessities, such as food and housing, as well as discretionary purchases, such as entertainment and travel. Consumption is driven by factors such as income levels, consumer confidence, and interest rates, making it a key driver of the US economy.Rate this question:
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- 5.
What is one effect of temporary concerns regarding slowing economic growth and increased volatility in developing financial markets, such as those in China?
- A.
Mortgages are becoming less affordable
- B.
The Federal Reserve is maintaining a high federal funds rate.
- C.
The recent slowdown in the services sector.
- D.
The recent slowdown in construction activity.
Correct Answer
D. The recent slowdown in construction activity.Explanation
One effect of temporary concerns regarding slowing economic growth and increased volatility in developing financial markets, such as those in China, is the recent slowdown in construction activity. This can be attributed to a decrease in investment and demand for new construction projects due to economic uncertainties. As a result, construction companies may experience a decline in business and reduced activity in the sector.Rate this question:
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- 6.
Companies that employ more than 500 people have increased jobs at a faster rate than companies that employ less than 500. True or False?
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because it states that companies employing more than 500 people have increased jobs at a faster rate than companies employing less than 500. However, there is no evidence or data provided to support this claim. Without any supporting information, it is not possible to determine the rate of job growth for companies based on their size. Therefore, the correct answer is false.Rate this question:
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- 7.
The total value of construction put in place improved considerably since 2011. Which of the following statements about construction over the period are true?
- A.
Residential construction is up 52.1% in real terms.
- B.
Seasonally adjusted to-date construction is up 1.3% from this time last quarter.
- C.
Total construction expenditure has now met its pre-recession peak.
- D.
Manufacturing construction is up 82% in real terms.
Correct Answer(s)
A. Residential construction is up 52.1% in real terms.
D. Manufacturing construction is up 82% in real terms.Explanation
The given correct answer states that residential construction is up 52.1% in real terms and manufacturing construction is up 82% in real terms. This implies that both residential and manufacturing construction have experienced significant growth since 2011. The statement about total construction expenditure meeting its pre-recession peak is not mentioned in the answer, so it cannot be considered true based on the given information. The statement about seasonally adjusted to-date construction being up 1.3% from this time last quarter is also not mentioned in the answer, so it cannot be considered true either.Rate this question:
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- 8.
Capital expenditure in both US and Canada is expected to fall in 2016. Why is capital expenditure so important to IBISWorld?
- A.
Our product is paid for from the capital budget of most clients
- B.
Capital expenditure is a gauge of overall future growth prospects
- C.
It is a good indicator of the health of Public Administration, our most important client segment
Correct Answer(s)
A. Our product is paid for from the capital budget of most clients
B. Capital expenditure is a gauge of overall future growth prospectsExplanation
Capital expenditure is important to IBISWorld because their product is paid for from the capital budget of most clients. This means that if capital expenditure falls, it could impact the company's revenue and financial stability. Additionally, capital expenditure is a gauge of overall future growth prospects, which is crucial for IBISWorld's business strategy and planning. Lastly, capital expenditure is a good indicator of the health of Public Administration, which is IBISWorld's most important client segment. Therefore, understanding the trends and changes in capital expenditure is essential for IBISWorld's success and decision-making.Rate this question:
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- 9.
A sector experiencing a severe decline in capital expenditure is a good target for the legal and business valuation sectors due to the potential M&A activity?
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A sector experiencing a severe decline in capital expenditure is a good target for the legal and business valuation sectors due to the potential M&A activity because when companies are facing financial difficulties and cutting back on investments, they may be more likely to consider merging or acquiring other companies as a way to strengthen their position in the market. This can create opportunities for legal and business valuation sectors to provide their services in assessing the value and feasibility of such M&A activities.Rate this question:
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- 10.
Capital expenditure in which sector did not grow in the first quarter of 2016 compared with the first quarter of 2015 for both US and Canada?
- A.
Utilities
- B.
Consumer Discretionary
- C.
Information Technology
- D.
Energy and Mining
Correct Answer
D. Energy and MiningExplanation
The correct answer is Energy and Mining. The explanation for this answer is that the capital expenditure in the Energy and Mining sector did not experience any growth in the first quarter of 2016 compared to the first quarter of 2015 for both the US and Canada. This implies that there was either a decrease in investment or no change in investment in this sector during that period.Rate this question:
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- 11.
What has been the effect of the Brexit vote result on the USD?
- A.
The USD has strengthened
- B.
The USD has weakened
Correct Answer
A. The USD has strengthenedExplanation
The Brexit vote result had a positive impact on the USD, causing it to strengthen. This is likely due to the uncertainty surrounding the UK's exit from the European Union, which led investors to seek the stability of the US dollar. Additionally, the US economy was seen as relatively strong compared to other countries, further boosting the value of the USD.Rate this question:
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- 12.
Which of the following best describes developments in IPO filings and the possible effect on our business valuation clients?
- A.
IPO Filing activity has increased, and this could cause our business valuation clients' workloads to decrease
- B.
IPO Filing activity has slowed, and this could cause our business valuation clients' workloads to grow
- C.
IPO Filing activity has slowed, and this could cause our business valuation clients' workloads to decrease
- D.
IPO Filing activity has increased, and this could cause our business valuation clients' workloads to grow
Correct Answer
C. IPO Filing activity has slowed, and this could cause our business valuation clients' workloads to decreaseExplanation
The correct answer is "IPO Filing activity has slowed, and this could cause our business valuation clients' workloads to decrease." This means that there has been a decrease in the number of IPO filings, which could result in a decrease in the workload for business valuation clients. With fewer IPOs, there would be fewer companies needing valuation services, leading to a potential decrease in workload for clients in this field.Rate this question:
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- 13.
What is the most important (by volume) export commodity in trade with the UK?
- A.
Nickel
- B.
Organic chemicals
- C.
Printed books and newspapers
- D.
Artwork
Correct Answer
D. ArtworkExplanation
Artwork is the most important export commodity in trade with the UK by volume. This implies that the volume of artwork exported from the UK surpasses the volume of other commodities listed (nickel, organic chemicals, and printed books and newspapers). Although the question does not provide specific data or context, this answer suggests that artwork holds significant value and demand in international trade with the UK.Rate this question:
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- 14.
The ultimate effects of Brexit are still unknown, but there are a few things we can assume. Which of the following are reasonable assumptions?
- A.
The US Federal reserve will bring forward planned interest rate hikes
- B.
A US/UK trade agreement will be established
- C.
The UK will have less political capital within the Eurozone
- D.
The UK will have greater control over domestic affairs and immigration
Correct Answer(s)
B. A US/UK trade agreement will be established
C. The UK will have less political capital within the Eurozone
D. The UK will have greater control over domestic affairs and immigrationExplanation
The ultimate effects of Brexit are still unknown, but based on the given information, it is reasonable to assume that a US/UK trade agreement will be established. This is because the UK will be seeking new trade agreements outside of the European Union. It is also reasonable to assume that the UK will have less political capital within the Eurozone, as they will no longer be a member of the EU. Additionally, it is reasonable to assume that the UK will have greater control over domestic affairs and immigration, as they will no longer be bound by EU regulations and policies.Rate this question:
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Current Version
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Mar 21, 2023Quiz Edited by
ProProfs Editorial Team -
Jul 28, 2016Quiz Created by
Damian Mills
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