Have an account?
Skip to Content
Build your own quiz
20 questions
Show Answers
See Preview
- 1. Multiple Choice
The Consumer Price Index (CPI) can be defined as
The market value of all final goods and services
A measure of inflation based on the cost of a fixed “market basket”
- 2. Multiple Choice
All of these are functions of money EXCEPT
Medium of exchange
Store of value
Commodity money
unit of measurement
- 3. Multiple ChoiceInflation is measured by...Consumer Price Index (CPI).Gross National Product (GNP).Gross Domestic Product (GDP).Securities & Exchange Commission (SEC).
- 4. Multiple Choice
If people are made unemployed because of a fall in aggregate demand this is known as:
Cyclical unemployment
Frictional unemployment
Structural Unemplyment
Seasonal Unemployment
- 5. Multiple Choice
The Phillips curve shows the relationship between inflation and what?
Unemployment
GDP
Price level
Inflation
- 6. Multiple Choice
It is the measure of a country's total production of final goods and services in a given period of time.
Gross National Product
Gross Domestic Product
Exports
Imports
- 7. Multiple Choice
What do you call an economic policy that is designed to influence the aggregate demand in order to control the economy?
Spending policy
National policy
Fiscal policy
Monetary policy
- 8. Multiple Choice
It is the continuing increase of the general price level in the market.
Inflation
Deflation
Stagflation
Recession
- 9. Multiple Choice
It is the decrease in the general level of prices of basic commodities.
Inflation
Deflation
Stagflation
Stagnation
- 10. Multiple Choice
Which of the following scenarios show frictional unemployment?
John got laid-off from work since the company is not making enough money.
Jeff cannot find work since most blue collar jobs are already filled.
Ramon quit his jobs to move to Canada for a better job offer.
Alberto works as a call center agent after graduating nursing
- 11. Multiple Choice
It is the total market value of all the final goods and services in a given period of time by the country's citizens.
Gross National Product
Gross Domestic Product
Consumer Price Index
Market Basket of Goods
- 12. Multiple Choice
It is the measure of national output that adjusts GNP to account for price changes.
nominal GNP
potential GNP
real GNP
actual GNP
- 13. Multiple Choice
The proportion of any change in income that is spent rather than saved is
the multiplier
income determinants
marginal propensity to consume
macroeconomic equilibrium
- 14. Multiple Choice
How much is MPS in an economy when MPC is .8?
.2
3
1.6
.8
- 15. Multiple Choice
Which is NOT a characteristic of a monopoly?
Seller sets the market price
Firm sells a unique product
One seller
Entry into the market is easy
- 16. Multiple Choice
Perfect competition involves:
Difficulty entering & exiting the market
A large number of buyers & sellers
Little information is available to buyers
Sellers working together to set prices
- 17. Multiple Choice
A disease has been affecting banana crops, and at the same time, consumers learn that bananas cure baldness. What will happen to the price and quantity of bananas?
Price and quantity will rise
Price will rise, while the quantity will fall
Price will fall, while quantity change is unknown
Price will rise, while the quantity change is unknown
- 18. Multiple Choice
Which of the following is consistent with the law of demand?
a decrease in the price of a gallon of milk causes a decrease in the quantity of milk demanded
an increase in the price of soda causes a decrease in the quantity of soda demanded
an increase of the price of tape causes an increase in the quantity of tape demanded
a decrease in the price of juice causes no change in the quantity of juice demanded
- 19. Multiple Choice
The expansionary fiscal policy involves
only an increase in taxes
a decrease in government spending and/or an increase in taxes
only a decrease in government spending
an increase in government spending and/or a decrease in taxes
- 20. Multiple Choice
The exchange rate between the domestic and a foreign currency is determined by…
The monetary strengths of countries involved
The political regime of the countries involved
The relative tax rate in those countries
The law of supply and demand
- Answer choicesTagsAnswer choicesTags