Question 1

Which of the following would not be an example of a macroeconomic topic?

Accepted Answer

A)  The general price level 
B)  The average wage rate in the economy 
C)  The price of holidays 
D)  The effect of a change in government expenditure on GDP 
A)  The general price level 
B)  The average wage rate in the economy 
C)  The price of holidays 
D)  The effect of a change in government expenditure on GDP C

Question 2

A key issue facing the UK government at the moment is to raise the skills level of younger people.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following is not a government economic objective?

Accepted Answer

A)  Low level of unemployment 
B)  Volatile prices 
C)  Favourable balance of trade 
D)  Economic growth 
A)  Low level of unemployment 
B)  Volatile prices 
C)  Favourable balance of trade 
D)  Economic growth B

Question 4

Fiscal policy can affect demand in the economy but not the supply.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is the best example of fiscal policy?

Accepted Answer

A)  Interest rates 
B)  Control of the money supply 
C)  Changes to the law 
D)  Changes in taxation rates 
A)  Interest rates 
B)  Control of the money supply 
C)  Changes to the law 
D)  Changes in taxation rates

Question 6

Macroeconomics involves the study of:

Accepted Answer

A)  Individual markets 
B)  Individuals' decisions to work 
C)  The whole economy 
D)  The determinants of the price of a particular product 
A)  Individual markets 
B)  Individuals' decisions to work 
C)  The whole economy 
D)  The determinants of the price of a particular product

Question 7

An example of government policy conflict might be:

Accepted Answer

A)  More spending to increase growth and reduce unemployment 
B)  Lower interest rates leading to more employment and more growth 
C)  Lower taxation leading to more growth and lower unemployment 
D)  An increase in demand leading to less unemployment and higher prices 
A)  More spending to increase growth and reduce unemployment 
B)  Lower interest rates leading to more employment and more growth 
C)  Lower taxation leading to more growth and lower unemployment 
D)  An increase in demand leading to less unemployment and higher prices

Question 8

Which of the following is not likely to be studied in macroeconomics?

Accepted Answer

A)  Unemployment 
B)  A favourable balance of trade 
C)  The price of cars 
D)  The growth of an economy 
A)  Unemployment 
B)  A favourable balance of trade 
C)  The price of cars 
D)  The growth of an economy

Question 9

By controlling the ________ rate the Bank of England can influence the amount of borrowing in the economy.

Accepted Answer

The answer of By controlling the ________ rate the Bank...

Question 10

To increase demand in the economy a government might:

Accepted Answer

A)  Increase income tax 
B)  Reduce government spending 
C)  Increase tax on company profits 
D)  Make it cheaper to borrow 
A)  Increase income tax 
B)  Reduce government spending 
C)  Increase tax on company profits 
D)  Make it cheaper to borrow

Question 11

A policy instrument such as fiscal policy:

Accepted Answer

A)  Is the result of achieving an objective, 
B)  Is a target, 
C)  Is a by-product of achieving a target, 
D)  Is used to achieve an objective, 
A)  Is the result of achieving an objective, 
B)  Is a target, 
C)  Is a by-product of achieving a target, 
D)  Is used to achieve an objective,

Question 12

If the government uses taxation and government spending to shift aggregate demand or supply it is called what?

Accepted Answer

A)  Monetary policy 
B)  Ecumenical policy 
C)  Fiscal policy 
D)  Normative policy 
A)  Monetary policy 
B)  Ecumenical policy 
C)  Fiscal policy 
D)  Normative policy

Question 13

Which of the following is the best example of monetary policy?

Accepted Answer

A)  Changes to interest rates 
B)  A change in income tax 
C)  A change in government spending 
D)  A change in the law 
A)  Changes to interest rates 
B)  A change in income tax 
C)  A change in government spending 
D)  A change in the law

Question 14

Which of the following would be a macroeconomic topic?

Accepted Answer

A)  The price of books 
B)  The effect of a change in interest rates on savings 
C)  The wage rate of footballers compared to retail workers 
D)  The demand for shoes 
A)  The price of books 
B)  The effect of a change in interest rates on savings 
C)  The wage rate of footballers compared to retail workers 
D)  The demand for shoes

Question 15

If the government uses interest rates to shift aggregate demand or supply it is called what?

Accepted Answer

A)  Monetary policy 
B)  Ecumenical policy 
C)  Fiscal policy 
D)  Normative policy 
A)  Monetary policy 
B)  Ecumenical policy 
C)  Fiscal policy 
D)  Normative policy

Exam 17: Introduction to Macroeconomics

Which of the following would not be an example of a macroeconomic topic?

A key issue facing the UK government at the moment is to raise the skills level of younger people.

Which of the following is not a government economic objective?

Fiscal policy can affect demand in the economy but not the supply.

Which of the following is the best example of fiscal policy?

Macroeconomics involves the study of:

An example of government policy conflict might be:

Which of the following is not likely to be studied in macroeconomics?

By controlling the ________ rate the Bank of England can influence the amount of borrowing in the economy.

To increase demand in the economy a government might:

A policy instrument such as fiscal policy:

If the government uses taxation and government spending to shift aggregate demand or supply it is called what?

Which of the following is the best example of monetary policy?

Which of the following would be a macroeconomic topic?

If the government uses interest rates to shift aggregate demand or supply it is called what?

What Is Economics

The Production Possibility Frontier PPF

Demand

Behavioural Economics

The Elasticity of Demand

Supply

Market Equilibrium

The Free Market System

Intervening in the Market System

Costs: Short Run and Long Run

Revenues, Costs, and Profits

Perfect Competition

Monopoly

Oligopoly

Monopolistic Competition and Non-Price Competition

The Labour Market

Equilibrium in the Economy

National Income and the Standard of Living

Demand Side and Supply Side Policies

Influences on Aggregate Demand: Consumption

Influences on Aggregate Demand: Investment

Influences on Aggregate Demand: Government Revenues and Taxation

Influences on Aggregate Demand: International Trade, Globalization, and Exchange Rates

Government Objectives: Economic Growth and the Economic Cycle

Unemployment

Money

Government Objectives: Managing Inflation

Government Objectives: Achieving a Favourable Trade Position

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