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- 1. Multiple Choice
Macroeconomics approaches the study of economics from the viewpoints of
individual firms
individual consumers
government units
the entire economy
- 2. Multiple Choice
The economy must operate at maximum capacity refers to
full employment
price stability
economic growth
equitable distribution of income
- 3. Multiple Choice
The three major macroeconomic goals do not include
full employment
price level stability
sustained economic growth
high levels of environmental quality
- 4. Multiple Choice
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
- 5. Multiple Choice
____ means total of real production of final goods and services available in the country.
Aggregate demand
Aggregate supply
Inflation
Aggregate output
- 6. Multiple Choice
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.
- 7. Multiple Choice
Which is the instrument of monetary policy?
Taxes
Government Expenditure
Income received from households
Legal cash reserve requirement
- 8. Multiple Choice
____ is the branch of economies that studies the individual decision making such as households, firms and government.
Macroeconomics
Microeconomics
Masterconomics
Microplan economics
- 9. Multiple Choice
Macroeconomics is a study of
individual price levels
government units
the entire economy
the behavioral of individuals firms
- 10. Multiple Choice
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.
- 11. Multiple Choice
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
- 12. Multiple Choice
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
- 13. Multiple Choice
A four-sector economy is called ___.
injection
open economy
simple economy
closed economy
- 14. Multiple Choice
The ____ slopes upwards because higher price levels will raise domestic output.
aggregate demand curve
aggregate supply curve
demand curve
none of the above
- 15. Multiple Choice
The following are macroeconomics objectives, EXCEPT ___.
price stability
full employment
high economic growth
unjust distribution of income
- 16. Multiple Choice
Government policies regarding taxes and expenditures are called ___.
fiscal policies
growth policies
monetary policies
supply side policies
- 17. Multiple Choice
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
- 18. Multiple Choice
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
- 19. Multiple Choice
All the following are monetary policy instruments, except __.
Legal cash reserve requirements
Government expenditure
Open market operations
Funding
- 20. Multiple Choice
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
- 21. Multiple Choice
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
- 22. Multiple Choice
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
- 23. Multiple Choice
Economic growth most unambiguously occurs when there are increase in ___
potential real GDP
aggregate demand
federal budget surplus
the population of a countrty
- 24. Multiple Choice
Fiscal policy attempts to achieve all of the following objectives except ___.
full employment
economic growth
price level stability
stable money supply
- 25. Multiple Choice
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
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