Macro Quiz 1

1. What does macroeconomics focus on?

A) Individual consumers

B) Aggregate economic variables

C) Specific industries

D) Local market trends

• A

• B

• C

• D

2. Which of the following is NOT a macroeconomic objective?

A) Full employment

B) Price stability

C) Increasing a company's profit

D) Economic growth

• A

• B

• C

• D

3. The study of microeconomics focuses on:

: A) National policies

B) Individual decision-maker

C) Global trade relations

D) Aggregate consumption

• A

• B

• C

• D

4. Full employment refers to:

A) No unemployment

B) Optimization of available resources

C) 100% employment of the labor force

D) Elimination of all job vacancies

• A

• B

• C

• D

5. High inflation primarily affects:

A) Exporters

B) Low-income individuals

C) Wealthy investors

D) Government revenue

• A

• B

• C

• D

6. Which term refers to the sustained increase in the general price level?

A) Deflation

B) Recession

C) Inflation

D) Stagflation

• A

• B

• C

• D

7. Economic growth is measured by:

A) Inflation rates

B) Changes in population size

C) Expansion in national output

D) Interest rate stability

• A

• B

• C

• D

8. What is the business cycle?

A) A sustained upward economic trend

B) Short-term fluctuations in economic performance

C) A period of zero economic growth

D) Consistent unemployment

• A

• B

• C

• D

9. Equitable income distribution ensures:

A) Uniform income across all jobs

B) Equal access to opportunities

C) Reduction in economic growth

D) Increased disparity between rich and poor

• A

• B

• C

• D

10. Balance of payment deficits can lead to:

A) Decreased national debt

B) Higher borrowing from overseas

C) Lower unemployment

D) Economic growth

• A

• B

• C

• D