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Macroeconomics Quiz

Macroeconomics · Easy

20 questions · Unlimited attempts · Free online practice

Macroeconomics studies the economy as a whole - analysing national and global patterns of output, employment, inflation, trade, and growth. Key measures include Gross Domestic Prod...

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All 20 questions in this Macroeconomics quiz

Currency that lacks intrinsic value and is established as legal tender solely by government decree is known as what?
- A. Commodity money
- B. Representative money
- C. Bimetallic money
- D. Fiat money
What is the absolute lowest point of a business cycle before an expansion begins called?
- A. Peak
- B. Trough
- C. Contraction
- D. Plateau
The financial costs incurred by firms having to frequently change their listed prices due to inflation are called what?
- A. Adjustment costs
- B. Frictional costs
- C. Sunk costs
- D. Menu costs
What occurs when a country imports more goods and services than it exports?
- A. Trade surplus
- B. Fiscal deficit
- C. Trade deficit
- D. Capital surplus
What is GDP?
- A. Output
- B. Income
- C. All
- D. Growth
Assets held by a central bank in foreign currencies to back its liabilities and influence monetary policy are called what?
- A. Foreign exchange reserves
- B. Sovereign wealth funds
- C. Special drawing rights
- D. Capital buffers
What does 'CPI' stand for?
- A. Common Price Inflation
- B. Central Power Index
- C. Capital Profit Index
- D. Consumer Price Index
What is 'Recession'?
- A. Period of economic decline
- B. Economic boom
- C. Rising prices
- D. Lowering unemployment
What is 'Diversification'?
- A. Investing in one stock
- B. Increasing production of one item
- C. Buying a bank
- D. Spreading investments to reduce risk
A phase of the business cycle in which the economy experiences a shrinking GDP is known as a:
- A. Expansion
- B. Contraction
- C. Peak
- D. Trough
The banking system in which only a portion of bank deposits are backed by actual cash on hand and available for withdrawal is known as what?
- A. Full-reserve banking
- B. Fractional-reserve banking
- C. Narrow banking
- D. Shadow banking
Which classical economic principle asserts that "supply creates its own demand"?
- A. Say's Law
- B. Walras's Law
- C. Okun's Law
- D. Gresham's Law
What does the economic term 'inflation' measure?
- A. The increase in a country's geographic output
- B. The reduction of national debt
- C. The rate at which the general level of prices is rising
- D. The rate at which employment is rising
What is 'GDP per capita'?
- A. Total GDP
- B. GDP after tax
- C. GDP divided by population
- D. GDP including imports
Which economic school of thought strongly advocates for active government intervention to manage aggregate demand during recessions?
- A. Austrian economics
- B. Classical economics
- C. Keynesian economics
- D. Monetarism
Which economic metric is calculated by dividing a country's Gross Domestic Product by its total population?
- A. Net National Product
- B. Genuine Progress Indicator
- C. GDP per capita
- D. Human Development Index
What is the term for very rapid, excessive, and out-of-control price increases?
- A. Core inflation
- B. Stagflation
- C. Hyperinflation
- D. Shrinkflation
What is 'Macroeconomics'?
- A. Study of small businesses
- B. Study of individual markets
- C. Study of personal finance
- D. Study of economy-wide phenomena
In the standard aggregate demand formula, how are Net Exports calculated?
- A. Total imports divided by total exports
- B. Value of exports multiplied by exchange rate
- C. Value of exports minus value of imports
- D. Total foreign investment minus total imports
Which theoretical curve illustrates the relationship between taxation rates and resulting government revenue?
- A. Lorenz Curve
- B. Phillips Curve
- C. Laffer Curve
- D. Kuznets Curve

Macroeconomics Quiz

Macroeconomics · Easy

Time is up! Quiz Complete!

Currency that lacks intrinsic value and is established as legal tender solely by government decree is known as what?

What is the absolute lowest point of a business cycle before an expansion begins called?

The financial costs incurred by firms having to frequently change their listed prices due to inflation are called what?

What occurs when a country imports more goods and services than it exports?

What is GDP?

Assets held by a central bank in foreign currencies to back its liabilities and influence monetary policy are called what?

What does 'CPI' stand for?

What is 'Recession'?

What is 'Diversification'?

A phase of the business cycle in which the economy experiences a shrinking GDP is known as a:

The banking system in which only a portion of bank deposits are backed by actual cash on hand and available for withdrawal is known as what?

Which classical economic principle asserts that "supply creates its own demand"?

What does the economic term 'inflation' measure?

What is 'GDP per capita'?

Which economic school of thought strongly advocates for active government intervention to manage aggregate demand during recessions?

Which economic metric is calculated by dividing a country's Gross Domestic Product by its total population?

What is the term for very rapid, excessive, and out-of-control price increases?

What is 'Macroeconomics'?

In the standard aggregate demand formula, how are Net Exports calculated?

Which theoretical curve illustrates the relationship between taxation rates and resulting government revenue?