Macroeconomics Review

Macroeconomics
Review

Multiple Choice

The study of a single factor of an economy - such as individuals, households, businesses, rather than the economy as a whole.

• Microeconomics

• Macroeconomics

Multiple Choice

The study of an entire economy.

• Microeconomics

• Macroeconomics

Multiple Choice

Predicting how consumers will react to higher gasoline prices

• Microeconomics

• Macroeconomics

Multiple Choice

Measuring the rate of unemployment

• Microeconomics

• Macroeconomics

Multiple Choice

Studying how consumer demand reacts to advertising

• Microeconomics

• Macroeconomics

Multiple Choice

What is the not the macroeconomics goals?

• Full employment or low unemployment

• Decreasing the price of the goods

• Price stability or low inflation

Multiple Choice

Classification of taxes ...

• Direct and indirect taxes

• Cheap and expensive

• Legal and illegal taxes

• All of the above

Multiple Choice

If real gross domestic product is declining, the economy is most likely experiencing which of the following?

• increasing unemployment

• negative long-run economic growth

• inflationary pressures

• an increase in aggregate demand

• a recovery

Multiple Choice

If the Federal reserve and Government are attempting to encourage growth and stimulate the economy, which actions would each take?  (monetary and fiscal)

• increase the Required reserve / increase government spending
• sell government securities / decrease taxes
• decrease the interest rate / increase government spending
• buy government securities / decrease government spending

Multiple Choice

Which of the following is a monetary policy action used to combat a recession?

• cutting taxes
• increasing the money supply
• decreasing the money supply
• raising taxes

Multiple Choice

Taxing & spending to help the economy grow is referred to as

• expansionary policy
• monetary policy
• contractionary policy
• budget deficit

Multiple Choice

Taxing & spending to slow the economy is referred to as 

• budget surplus 
• monetary policy
• contractionary policy
• budget deficit

Multiple Select

Check all that apply: Which of the following are characteristics of a perfectly competitive market?

• Many buyers/sellers

• Identical Products

• Price Makers

• Low barriers of entry

Multiple Choice

The United States prohibited all imports and exports to and from Cuba in the 1960s.

• Tariff

• Quota

• Embargo

Multiple Choice

A monopoly is when:

• One seller/business dominates an industry.

• A few sellers/businesses dominate an industry.

• Supply exceeds demand.

• A business offers special gifts and coupons.

Multiple Choice

Which of the following is an expansion, or recovery?

• A

• B

• C

• D

Multiple Choice

China placed a 25% tax on imported American chicken.

• Tariff

• Quota

• Embargo

Multiple Choice

If a news headline says, "3 months of consecutive job losses is impacting consumer confidence."

Where on the business cycle is the current economy?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

Multiple Choice

If a news headline says, "Finally!!! 2 straight months of increased jobs."

Where on the business cycle is the current economy?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

Multiple Choice

How are monetary policy and fiscal policy similar?

• They are both done by the President.

• They are both done by the Fed.

• They are both used to keep the economy stable.

• They both use four tools.

Multiple Choice

Which fiscal policy tool would be used if the economy were in a trough?

• decrease reserve requirement

• increase individual tax rate

• sell bonds through open market operations

• increase government spending

Multiple Choice

Which of the following is responsible for fiscal policy?

• the Federal Bureau of Investigation

• the Federal Reserve

• Congress & the President

• the Federal Reserve banks

Multiple Choice

Inflation makes your money less valuable over time?

• True
• False

Multiple Choice

When GDP rises faster than the long-run trend the economy is experiencing-

• recession

• expansion

• recovery

Multiple Choice

GDP declines during a(an)

• peak

• contraction

• expansion

Multiple Choice

The Business Cycle measures ___ over time.

• wealth

• inflation

• economic growth

Multiple Choice

The three main factors of production are:

• school, work, and retirement

• land, labor, and capital

• economy, specialization, and trade

• goods, services, and people

Multiple Choice

Who typically ends up paying tariffs?

• Importers and/or consumers

• The International Monetary Fund

• Congress

• Exporters