Macroeconomics Exam Review

58 Questions | Total Attempts: 1055

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Macroeconomics Quizzes & Trivia

Quiz for macro economics. STUDY Hard!


Questions and Answers
  • 1. 
    All of the following will likely trigger increases in output except:
    • A. 

      Increases in the labor force

    • B. 

      Increases in labor productivity

    • C. 

      Increases in interest rates

    • D. 

      Increases in consumer spending

  • 2. 
    Comparisons of per capita gross domestic product between countries ______.
    • A. 

      Provide a good measure of relative living standards

    • B. 

      Is a useless task because each country uses a different method of calculating

    • C. 

      Provide information about productive capabilities, not relative standards of living

    • D. 

      Provide an accurate gauge of absolute standards of living

  • 3. 
    The "core" rate of inflation excludes changes in ______ from the normal measures of inflation.
    • A. 

      Food and energy prices

    • B. 

      Housing prices

    • C. 

      Clothing prices

    • D. 

      Gold prices

  • 4. 
    The difference between real and nominal income or GDP arises because of the presence of ________.
    • A. 

      The difference between report and actual corporate profit

    • B. 

      Difference in values of currencies

    • C. 

      People that do not report all their earnings

    • D. 

      Inflation

  • 5. 
    Suppose that last week 100,000 people lost their jobs or quit, while 10,000 new job seekers began to look for work too. we can say that ______.
    • A. 

      The number of unemployed rose by 110,000

    • B. 

      The number of unemployed increased by 100,000

    • C. 

      The number of unemployed increased by less than 100,000 since we do not count those who quit their jobs

    • D. 

      There are a total of 110,000 unemployed people in the economy

  • 6. 
    Historically, the following relationships have been observed except for:
    • A. 

      Lower unemployment brings higher inflation

    • B. 

      Higher inflation brings higher interest rates

    • C. 

      Higher unemployment brings high wages

    • D. 

      Higher taxes bring lower consumption

  • 7. 
    Increases in the rate of growth in the money supply have been shown to most likely result in:
    • A. 

      Higher employment

    • B. 

      Higher rates of inflation

    • C. 

      Higher rates of economic growth

    • D. 

      Smaller government budget deficits

  • 8. 
    The u.s. federal debt has grown whenever
    • A. 

      The federal budget shows a deficit

    • B. 

      The federal government borrows

    • C. 

      The federal government issues treasury securities

    • D. 

      All of the above

  • 9. 
    Fiscal policy has been most successful when
    • A. 

      Taxes were raised during recessions

    • B. 

      Government spending was increased with the economy at full employment

    • C. 

      The government purposely increased the size of the deficit during a recession

    • D. 

      When efforts were made to eliminate a budget deficit during a recession

  • 10. 
    The high rates of inflation n the 1970s and early 1980s have been shown to be primarily due to _________.
    • A. 

      Rapid money supply growth

    • B. 

      High oil prices

    • C. 

      The vietnam war

    • D. 

      Unions and big business

  • 11. 
    If the federal reserve increases the money supply at approximately the growth rate of output, then ___.
    • A. 

      It has over stimulated the economy

    • B. 

      The unemployment rate should rise

    • C. 

      The inflation rate should be near zero

    • D. 

      The unemployment rate should approach zero

  • 12. 
    Which of the following does not increase aggregate demand?
    • A. 

      An increase in consumer spending

    • B. 

      An increase in interest rates

    • C. 

      An increase in government spending

    • D. 

      An increase in the money supply

  • 13. 
    Which of the following best defines a recession?
    • A. 

      Rising unemployment

    • B. 

      Rising prices

    • C. 

      Falling output

    • D. 

      Falling stock prices

  • 14. 
    The money supply is controlled by
    • A. 

      The president

    • B. 

      Congress

    • C. 

      The federal reserve

    • D. 

      All of the above

  • 15. 
    A decrease in the value of the dollar will cause all of the following except:
    • A. 

      A rise in imports

    • B. 

      A rise in exports

    • C. 

      An increase in the inflation rate

    • D. 

      A reduction in the trade deficit

  • 16. 
    Buyer willingness to buymike 50.00sandy  30.00jonathan 20.00haley 10.00if the table represents the willingness to pay of four buyers and the price of the product is 22, then who would be willing to purchase the product?
    • A. 

      All would be willing

    • B. 

      Mike

    • C. 

      Mike,sandy,jonathan

    • D. 

      Mike, sandy

  • 17. 
    The unique point at which the supply and demand cures intersect is called
    • A. 

      Equilibrium

    • B. 

      Cohesion

    • C. 

      Coincidence

    • D. 

      Market equality

  • 18. 
    A good that is produced domestically and sold abroad is called
    • A. 

      A tariff

    • B. 

      A quota

    • C. 

      An export

    • D. 

      An import

  • 19. 
    A price floor
    • A. 

      Increases total social welfare when business are unable to change a fair price for their goods and services

    • B. 

      Will always result in deadweight loss

    • C. 

      Is a legal minimum at which a good or service may be sold

    • D. 

      All of the above

  • 20. 
    If a price floor of $8 per unit is established, what will consumer surplus be?(graph on paper)cs=1/2bh        1/2(12)80   480
    • A. 

      480

    • B. 

      680

    • C. 

      1120

    • D. 

      None of the above

  • 21. 
    Which of the following prices would represent a binding price ceiling?(graph on paper)
    • A. 

      22

    • B. 

      19

    • C. 

      16

    • D. 

      13

  • 22. 
    The opportunity cost of 1 bushel of wheat in texas is(table on paper)
    • A. 

      8 bushels of wheat

    • B. 

      8 bushels of oats

    • C. 

      24 bushels of oats

    • D. 

      1 bushel of oats

  • 23. 
    If texas and california were to specialize and engage in trade that would benefit both states(table on paper)
    • A. 

      Both states would produce both products

    • B. 

      Texas would produce wheat, texas would produce oats

    • C. 

      Texas would produce oats, california would produce wheat

    • D. 

      There is no telling what the states would do

  • 24. 
    What is the opportunity cost to move from point c to point b(figure on paper)
    • A. 

      100 baseballs

    • B. 

      100 bananas

    • C. 

      300 bananas

    • D. 

      200 bananas

  • 25. 
    Assume this country has a lower opportunity cost to produce baseballs than another country, and they can trade 1 baseball for 5 bananas. if they country represented in the figure were to specialize i the good in which they have a comparative advantage, then trade half of that good to the other country, what will be consumed?
    • A. 

      200 baseballs, 0 bananas

    • B. 

      100 baseballs, 500 bananas

    • C. 

      0 baseballs, 400 bananas

    • D. 

      40 baseballs, 200 bananas

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