MACROECONOMIC

1. Which of these options is not a role of government?

• Producer

• Consumer

• Lawmaker

• Tax payer

2. What is Macroeconomics?

• the economy as a whole

• The part of economics concerned with single factors and the effects of individual decisions

• The study of how a national economy works

• The analysis of the behavior of individual consumers and producers

3. Which of these options is a macroeconomic objective?

• Economic growth

• A high and stable level of employment

• Equitable distribution of income and wealth

• All three

4. If a government can achieve their aims

• It will create a favorable economic climate for business and improve people’s standard of living

• The level of employment will decrease

• People’s standard of living will deteriorate

• People's standard of living will stagnate

5. How do governments want to achieve their aims?

• By exploiting people

• By maximizing the exploitation of natural resources

• In satisfying big companies requests

• In an environmentally sustainable manner

6. Expansionary policy is used to boost economic activity. Which of these propositions is not an expansionary policy tool?

• Decreasing interest rates

• Increasing interest rates

• Increasing government spendings

7. Expansionary policy will often be used, except

• During recession

• During rising inflation

• During an economic downturn

8. Supply-side policies:

• Aim to maximizing the exploitation of natural resources

• Aim to boost the productive potential of the economy and increase aggregate supply

• Aim to slow down the economy during rising inflation

• Aim to unbalance the trade balance

9. When implementing supply-side policies, the government uses a range of tools to increase the quantity and quality of resources in the economy such as:

• Subsidies

• Competition policy

• Tax incentives

• All three

10. Contractionary policy is used to slow economic activity. Which of these propositions is not a contractionary policy?

• Decreasing interest rates

• Increasing interest rates

• Decreasing government spendings