Macroeconomics Quiz

Which of the following is least related to macroeconomics?

• Demand and supply

• Inflation

• Unemployment

• Exchange rates

Which of the following will improve the standard of living?

• A terrorist attack

• Implementation of a vaccination program for babies

• More cars on the road and increased pollution

• A growing distance between rich and poor

Which of the following is the best estimate of GDP in Country X?

• $240

• $200

• $210

• $190

Which of the following statements is true in relation to Country X?

• Net exports are $20B in surplus

• Net exports are $60B

• Net exports are $40B

• Net exports are $20B in deficit

The current annual rate of economic growth of a nation is best measured by?

• % change in nominal GDP from one year to the next in $

• % change in real GDP over the past year

• Change in the value of goods and services in $

• % change in the value of goods and services in current $

In relation to the circular flow model, which statement is false?

• Incomes flow from businesses to households

• Resources flow from households to businesses

• Resources flow to and from foreign countries

• Income tax flows to financial institutions

Consider the circular flow of income of an economy and select the best example of a leakage:

• Taxes

• Government spending

• Export revenue

• Investment

Consider the circular flow of income of an economy and select the best example of an injection:

• Savings

• Taxes

• Export revenue

• Import expenditure

Which statement is true in relation to the income method of calculating GDP?

• GDP measures the yearly total incomes earned by households

• GDP measures a year's total production

• GDP measures the value of all final goods and services

• GDP adds up all the spending to buy final goods and services

Which of the following would NOT be included as investment when calculating GDP?

• The real estate fees when a couple sell a house

• The purchase of a new home

• A business purchase of a new printer

• The purchase of a car for a business