Macroeconomics System Quiz Questions

13 Questions | Total Attempts: 323

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Macroeconomics Quizzes & Trivia

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Questions and Answers
  • 1. 
    The fundamental questions that an economic system attempts to solve include:
    • A. 

      For whom to produce

    • B. 

      What to produce

    • C. 

      How to produce

    • D. 

      All of the above

  • 2. 
    The United States is best known as a
    • A. 

      Command and control system

    • B. 

      Mixed economic system

    • C. 

      Pure price system

    • D. 

      Dictatorship

  • 3. 
    Economists assume people behave
    • A. 

      Rationally

    • B. 

      Instinctively

    • C. 

      Irrationally

    • D. 

      Greedily

  • 4. 
    The author of the book The Wealth of Nations is:
    • A. 

      Thorstein Velben

    • B. 

      Milton Friedman

    • C. 

      Alan Greenspan

    • D. 

      Adam Smith

  • 5. 
    In order to study how changing price affects consumer decisions, we must assume all other factors, such as income and prices of other goods are constant. This assumption is best known as:
    • A. 

      Ceteris paribus

    • B. 

      Normative economics

    • C. 

      Behavioral economics

    • D. 

      Rationality

  • 6. 
    Positive economics
    • A. 

      Is objective

    • B. 

      Was not used by nineteenth century economists

    • C. 

      Is concerned with the economic policies that should be implented

    • D. 

      Always gives an optimistic spin to economic news

  • 7. 
    A fundamental principle in demand analysis is that a change in price leads to
    • A. 

      A movement along the demand curve

    • B. 

      A complementary movement on the supply curve

    • C. 

      A rightward shift on the demand curve

    • D. 

      A leftward shift on the demand curve

  • 8. 
    Which of the following will cause a rightward shift of the demand curve?
    • A. 

      A decrease in the price of the good

    • B. 

      A decrease in the cost of production

    • C. 

      An increase in the expected future price of the good

    • D. 

      All of the above

  • 9. 
    An increase in the number of consumers in a market would cause
    • A. 

      An increase in supply

    • B. 

      An increase in quantity supplied

    • C. 

      An increase in quantity demanded

    • D. 

      An increase in demand

  • 10. 
    If the price of gasoline rises sharply and the demand for sports utility vehicles falls then the two goods are
    • A. 

      Normal goods

    • B. 

      Inferior goods

    • C. 

      Substitutes

    • D. 

      Complements

  • 11. 
     A per-unit government subsidy to producers of a good tends to
    • A. 

      Reduce the supply of the good

    • B. 

      Not have any effect on the good's supply

    • C. 

      Increase the supply of the good

    • D. 

      Shift the supply curve to the left

  • 12. 
    Suppose the price of cement goes up in the United States. What happens in the market for new homes
    • A. 

      Supply shifts upward and to the left

    • B. 

      Demand shifts to the right

    • C. 

      Supply shifts downward and to the right

    • D. 

      Demand shifts left

  • 13. 
    With respect to the market clearing price and the equilibrium quantity for good X, an an increase in the demand for and and a decrease in the supply of the good definitely will
    • A. 

      Decrease the market clearing price and the equilibrium quantity of good X

    • B. 

      Increase the market clearing price of good X but lower the equilibrium quantity of X

    • C. 

      Increase the market clearing price and the equilibrium quantity of good X

    • D. 

      Increase the market clearing price of good X but have and uncertain impact on the equilibrium quantity of X