Macroeconomics Test

Macroeconomics Test. True or False

One Point Each

 

 

• ______________  To change nominal values to real values we must

Divide nominal values by 10.

• ______________ double counting in regards to GDP values is not important.

 

• _______________ Producer surplus is the difference between willingness to sell and the price that the seller receives.

 

• _______________ An excise tax is a tax on a particular item.

 

• _______________ Deadweight loss increases demand.

 

• ______________ Inflation is the general price rise in the economy.

 

• ______________ If a person is out of work because his skills are not needed in the present economy, we say he is frictionally unemployed.

 

• ______________ The loanable funds market connects savers with borrowers.

 

9. Consumer surplus is defined as the

a.) the difference between the willingness to pay for goods and the supply of the good

b.) total revenue earned

c.) difference between willingness to pay for a good and the price paid

d.) the marginal revenue the producer receives

 

 

 

 

10.)  A discouraged worker is one who is

 

• actively look for work
• has given up looking for work
• working seasonally
• none of the above

 

11.) The economy can be in an

a.)  inflationary period

b.) deflationary period

c.) stagflationary period

d.) all of the above

 

 

12.)  When the consumers creates inflation we call it

• demand pull inflation
• demand push inflation
• demand pull deflation
• demand push deflation

 

 

13.) When the producers creates inflation we call it

a.) demand pull inflation

b.) demand push inflation

c.) demand pull deflation

d.) demand push deflation

 

 

14.)  When the producers creates deflation we call it

a.) demand pull inflation

b.) demand push inflation

c.) demand pull deflation

d.) demand push deflation

 

 

15.)  When you buy stock

• you are buying part of the company
• you are loaning the company money
• you are buying the company’s bonds
• none of the above

 

16.)  Demanders in the loanable funds market consists of

 

• foreign governments
• domestic governments
• households
• All of the above

 

17.)  Factor or factors which shift demand for loanable is or are

• Productivity of Capital
• Investor confidence
• Change in Income
• a and b only

 

18.)     Lenders in the loanable funds market consists of

a.) foreign parties

b.) domestic governments

c.) firms

d.) both foreign parties and households

 

19.)  Lenders of loanable funds are most interested in

• the price of labor
• the price of land
• The marginal rate of investment
• The ROI (the return on investment)

 

 

20.)   A bond is an instrument that allows the bearer to earn interest.  The  owner would be

• a demander of loanable funds
• a supplier of loanable funds
• a financial intermediary
• one who borrows money

 

 

21.)   Factor or factors that shift the supply of loanable funds

a.) Income and wealth

b.) Time preference

c.) Different levels of consumption for the an individual

d.) All of the above

 

22.)  The interest rate is

a.) only a cost to the borrowers

b.) only the return to the savers

c.) a return to borrowers

d.) is a return to the savers and cost to the borrowers

 

23.)  When scarce resources cannot change, we say that

a.) we are in the short run

b.) we are in the long run

c.) it is a period of time less than one year

d.) it is a period of time greater than one year

 

 

24.)  When scarce resources can change we say that

 

a.) we are in the short run

b.) we are in the long run

c.) it is a period of time less than one year

d.) it is a period of time greater than one year

 

 

25.)  If interest rates rise because of inflation

• firms are willing to borrow more money
• households are willing to borrow more money
• firms are willing to borrow less money
• foreign entities are willing to borrow more money

 

26.)  Which country is the higher credit to the United States

• France
• Germany
• Canada
• China

 

27) Property Rights

 

• Is an important fact for economic growth
• Is not an important for economic growth
• Is very important in China
• None of the above

 

Macroeconomics Test

Thanks for installing the Bottom of every post plugin by Corey Salzano. Contact me if you need custom WordPress plugins or website design.