WorksheetsIntroduction to Macroeconomics
Total questions: 95
Worksheet time: 48mins
Which of the following studies economics as a whole?
Microeconomics
Macroeconomics
both Micro and Macroeconomics
Which of the following is studied in Macroeconomics?
Individual income
individual savings
individual output
general price level
Which of the following studies the problems of economics at individual levels?
Microeconomics
Macroeconomics
Both Micro and Macro economics
Which branch of macroeconomics specifically focuses on the problems of developing economies?
Development Economics
Monetary Economics
Public Finance
Trade Cycle Theory
Which of the following is not the subject matter of macroeconomics?
National Income Accounting
Business cycle
Laws of demand and supply
General price level
Which of the following is a subject matter of Macroeconomics?
Studies Employment & Unemployment
Determination of National Income
Promotes Economic Growth & Development
All of the above options
Which of the following helps to develop & expand the microeconomics theories?
Macroeconomics
Keynes
Theory of Income
Adam Smith
Which of the following is not concerned with Macroeconomics?
National Income Accounting
Inflation
International Trade
Individual Firm
The Federal Reserve's two primary goals DO NOT include
maximum sustainable employment
stable inflation
diversification of the economy
One measure of the economy macroeconomists pay attention to to study the pace of growth in the economy is
supply
inflation
demand
equilibrium price
Who provides top leadership for the Federal Reserve?
Member Banks
Federal Open Market Committee
Board of Governors
Federal Depository Institutions
The Federal Open Market Committee
combines the Board of Governors and the 12 Reserve Banks
contains approximately 8.039 commercial banks
ensures safety deposits
Macroeconomics approaches the study of economics from the viewpoints of
individual firms
individual consumers
government units
the entire economy
The economy must operate at maximum capacity refers to
full employment
price stability
economic growth
equitable distribution of income
The three major macroeconomic goals do not include
full employment
price level stability
sustained economic growth
high levels of environmental quality
Economic growth would most likely be stimulated by
higher unemployment rates
faster rates of technological progress
increases in membership of labour unions
consumption of more consumer goods
____ means total of real production of final goods and services available in the country.
Aggregate demand
Aggregate supply
Inflation
Aggregate output
Which is not a function of Central bank?
To be a banker to other bank
To promote monetary stability and a financial structure
To import the printing of currency
Be a holder of the country's stock of gold and foreign currency reserves.
Which is the instrument of monetary policy?
Taxes
Government Expenditure
Income received from households
Legal cash reserve requirement
____ is the branch of economies that studies the individual decision making such as households, firms and government.
Macroeconomics
Microeconomics
Masterconomics
Microplan economics
Macroeconomics is a study of
individual price levels
government units
the entire economy
the behavioral of individuals firms
Which of the following is related to macroeconomics?
An empirical analysis of general price levels and unemployment rates since 1999.
A study of how hiring more foreign workers affect the construction sector.
An investigation of petrol price increases and the impact on Malaysians.
An examination of the income of IT graduates.
Equilibrium in macroeconomics refers to ___.
total value of output being produced more than total value of expenditure.
aggregate supply being greater than aggregate demand
aggregate demand being greater than aggregate supply
aggregate demand being equal to aggregate supply
A two-sector economy in the circular flow diagram is represented by ___.
households and the government
firms and the government
households and firms
banks and firms
A four-sector economy is called ___.
injection
open economy
simple economy
closed economy
The ____ slopes upwards because higher price levels will raise domestic output.
aggregate demand curve
aggregate supply curve
demand curve
none of the above
The following are macroeconomics objectives, EXCEPT ___.
price stability
full employment
high economic growth
unjust distribution of income
Government policies regarding taxes and expenditures are called ___.
fiscal policies
growth policies
monetary policies
supply side policies
The branch of economies that examines the functioning of individual industries and the behavior of individual decision making units is ___.
microeconomics
macroeconomics
positive economics
normative economics
All the following are the objectives of monetary policy except ___.
To achieve the balance of payment
To achieve full employment of resources
To maintain domestic price instability
To achieve higher economic growth
All the following are monetary policy instruments, except __.
Legal cash reserve requirements
Government expenditure
Open market operations
Funding
Which of the following is the most appropriate fiscal policy for recession?
Decreases in government spending
Increases in interest rate
Decreases in tax rate
Increases in tax rate
The effect of expansionary monetary policy is a /n___.
increase in interest rate
decrease in interest rate
increase in government spending
decrease in government spending
In expansionary monetary policy, government will ___.
Sell securities, higher legal cash reserves requirement and increase bank rate
Decrease government expenditure, increase taxes.
Increase government expenditure, decrease taxes
Purchase securities, lower legal cash reserves requirement, decrease bank rate
Economic growth most unambiguously occurs when there are increase in ___
potential real GDP
aggregate demand
federal budget surplus
the population of a countrty
Fiscal policy attempts to achieve all of the following objectives except ___.
full employment
economic growth
price level stability
stable money supply
Which of the following is a macroeconomic statement?
The gross profit of all Malaysian Business were RM 10 billion last year.
The price of beef declined by 1% last year
General motors' profits increased in the year 2003
The productivity of steel works increased by 1% in the year 2003
Aggregate supply is the total amount:
Of labour supplied by all households
Of products produced by a given industry
Produced by the government
Of goods and services produced in an economy
Macroeconomics theory studies the following EXCEPT…
How to determine international trade activities
How to determine the unemployment and inflation rate
How to determine the equilibrium income in an economy
How to determine type and quality of goods to produce
Macroeconomics studies the economy from viewpoint of …
The firms
The households
The government
The entire economy
Which of the following is NOT a macroeconomics objective?
To achieve equal distribution of income
To maintain domestic price instability
To achieve full employment of resources
To achieve sustainable economic growth
Which of the following is a macroeconomic statement?
The price of rice decline by 1%
ALTEL company profit increase by 10%
The demand of PEPSI dropped
The income of Malaysian increase
Which of the following is not the area of macroeconomics:
Unemployment rate
Market structure
Inflation rate
Foreign exchange rate
The equilibrium aggregate price level and level of aggregate output occur when
The aggregate demand and aggregate supply curve intersect
Real domestic output is at its maximum level
There is full employment
The exports are equal to import
A country is said to be experiencing inflation when…
Prices of most goods and services are rising over time
Total output is falling over time
Total output is rising over time
Prices of most goods and services are falling over time
The goals of macroeconomics include
Economic stagnation
Higher price level
Imbalance in balance of payment
Full employment
Which of the following is a macroeconomics objective?
Unemployment
Extremely high economic growth
Employed all available resources
Inflation
Which of the following is related to macroeconomics analysis?
Deal with household‟s and firm decision.
Analyzes demand for supply of goods.
Studies national income.
Studies individual income.
The total demand for goods and services in an economy is known as;
Aggregate demand
National demand
Gross national product
Economy-wide demand
Which of the following is an macroeconomics statement?
The price of Ipad increase about 8.5%.
The inflation rate of Malaysia is 3.1% in 2012.
FELDA profit increases every year
The price of chicken increasing during Chinese New Year
Macroeconomics deals with ____________.
Economic aggregates
The behavior of the electronics industry
The behavior of firms
The activities of individuals units
Which of the following is NOT a macroeconomic issue?
Unemployment.
Inflation.
The wages paid to footballers.
Economic growth.
Macroeconomics is concerned with the study of _________________.
Malaysian‟s response towards changes in the price of sugar.
Production method and costs.
The effects of reduction of wages on services sector.
The general price level.
Macroeconomics theory studies the following except how ________________.
To determine international trade activities.
To determine the equilibrium income in an economy.
To determine the unemployment and inflation rate.
To determine type and quantity of goods to produced.
The branch of economics that that examines the functioning of individual industries and the behavior of individual decision-making units is ___________.
Macroeconomics
Microeconomics
Positive economics
Normative economics
The three major normative macroeconomic goals do not include ________________.
Full employment.
Price level stability.
Sustained economic growth.
High levels of environmental quality.
Economic growth would most likely be stimulated by _______________.
Higher unemployment rates.
Faster rates of technological progress.
Increases in membership of labour unions.
Consumption of more consumer goods.
With what kinds of topics does macroeconomics concern itself?
Economic activities of individual firms, households, and other organizations.
Forces of supply and demand in a particular market.
Consumer behavior and firms output decisions.
Aggregate economic phenomena like the rate of unemployment and inflation
Which one of the following is the best explanation of macroeconomics?
The study of economics
The study of decisions that businesses and individuals make in the marketplace
The study of the global economy
The study of economic phenomena that affects an entire economy
Macroeconomics is associated with the fluctuation of the general price level in the country.
TRUE
FALSE
Macroeconomics explains the behavior of individual household and business firms.
TRUE
FALSE
Price level stability is one of the macroeconomic goals.
TRUE
FALSE
The purpose of monetary policy is to maintain the overall price level and to achieve higher economic growth.
TRUE
FALSE
The government implements contractionary monetary policy when recession occurs.
TRUE
FALSE
Monetary policy is changes in the money supply or credit conditions designed to achieve macroeconomic goals.
TRUE
FALSE
The tools of fiscal policy are government expenditure is and taxation.
TRUE
FALSE
Aggregate demand is the total aggregate output and price level of economy in a given period.
TRUE
FALSE
These are all macroeconomics objectives except ____________________.
Income equitability distribution.
Full employment.
Technology improvement.
Economic growth.
Which of the following is a macroeconomics statement?
The gross profit of all Malaysian businesses were RM10 billion last year
The price of beef declined by 1% last year.
Perodua company profits increased in the year 2003.
High levels of environmental quality.
Aggregate Demand curve shows ______________________.
the total goods where the individual is willing and able to buy at a certain price, ceteris paribus
the real output where an individual is willing and able to buy, ceteris paribus
the total goods, where the individual are able for sale, ceteris paribus
the real output of where the individual is willing and able to buy at different price level, ceteris paribus
Macroeconomics distinguishes the real economy and the ____________________.
monetary economy.
virtual economy.
normative economy.
underground economy.
Which of the following is a macroeconomics study?
Price of luxury car
Unemployment rate in the country.
Production methods and cost
Demand for smartphone
Which of the following statements is FALSE about economic growth?
Economic growth solves the economic problem.
Economic growth can help in having new technology.
Economic growth can help in expansion of education.
Economic growth can help in using tidal power.
Macroeconomics study the ___________________.
Demand and supply of the individual economic.
Aggregate demand of the entire economic.
Aggregate demand and aggregate supply of the entire economic.
Aggregate supply of the entire economic.
______________ is the study of economics from the viewpoint of the entire economy.
Microeconomics
Macroeconomics
Normative economics
Descriptive economics
The following are the goal of macroeconomics EXCEPT
Equitable distribution of income.
High unemployment.
Economic growth.
Price stability.
Among the problems studied in macroeconomics are _____________________.
inflation rate in Malaysia.
price of inferior good.
supply for smartphone.
market for Perodua car.
Economic growth would result from technological advances or increases in the resources available or ________________.
Reduced rates of employment outsourcing.
The federal budget deficit.
Aggregate demand.
An increase in the country’s terms of trade
Economic growth most unambiguously occurs when there are increases in________________.
Potential real GDP.
Aggregate demand.
Federal budget surpluses.
The population of a country.
Which of the following is NOT a topic studied in Macroeconomics?
Gross domestic product
The unemployment rate
The price of IBM computers
The inflation rate
Which of the following is a topic studied in Macroeconomics?
Gross domestic product
The wage of auto workers
The price of IBM computers
The amount of pizza produced
Which of the following is a topic studied in Macroeconomics?
The functioning of individual industries
Aggregate behavior of household and industries
The behavior of individual households
The decision-making of individual business firms
Unemployment generally________during recessions and ________during expansions.
Falls; rises
Falls; falls
Rises; falls
Rises; rises
Macroeconomics is concerned with inflation or deflation, output growth and unemployment.
TRUE
FALSE
Macroeconomics is concerned with the market price and equilibrium quantity of each good or service.
TRUE
FALSE
The employment rate is the number of people employed divided by number of people in the labor force.
TRUE
FALSE
Macroeconomic behavior is the sum of all the microeconomic decisions made by individual households and firms.
TRUE
FALSE
The aggregate supply curve is a positive relationship between the price level and the level of economy in a given period.
TRUE
FALSE
The macroeconomic variables are as follows, except
Wage rate
Inflation rate
Unemployment rate
Economic growth rate
The aggregate supply curve shifts to the right when _______.
Wage rates increase
Consumption decreases
Investment increases
Supplies of resources increase
Macroeconomics is a study of economics that deals with 4 major factors ;
Household, firms, government, and demand-supply
Household, firms, government and external factor
Firms, government, free-market, and regulations
None of the above
With what kinds of topics does macroeconomics concern itself?
Economic activities of individual firms, household, and other organizations.
Forces of supply and demand in a particular market.
Consumer behavior and firms output decisions.
Aggregate economic phenomena like the rate of unemployment and inflation.
The aggregate supply curve______________.
Is perfectly inelastic.
Is positively sloped upward.
Slopes up because the higher price level will increase domestic output.
Slopes down because production costs decrease as output.
Which of the following would not be included in aggregate demand?
An increase in firm‟s inventories.
Firm‟s purchases of newly produced machinery.
Purchases of goods by households.
Government’s tax collections.
Which of the following headlines is more closely related to what microeconomics study than to what macroeconomics study?
Unemployment rate falls from 7.5 percent to 7.3 percent.
Real GDP falls by 0.4 percent in the third quarter.
Inflation was 2.4 percent last year.
The price of gasoline rises due to rising oil prices.
