Introduction to Macroeconomics Final Exam Questions
Course Introduction
Introduction to Macroeconomics explores the broad principles and concepts that govern the functioning of national and global economies. This course covers topics such as gross domestic product (GDP), inflation, unemployment, economic growth, fiscal and monetary policy, and the role of government in economic activity. Students will gain foundational knowledge in analyzing economic indicators, understanding business cycles, and interpreting the effects of economic policies on society. The course provides essential tools for evaluating current economic issues and prepares students for further study in economics and related fields.
Recommended Textbook
Economics for Today 4th Asia Pacific Edition by Allan Layton
Available Study Resources on Quizplus
19 Chapters
2245 Verified Questions
2245 Flashcards
Source URL: https://quizplus.com/study-set/1073
Page 2
Chapter 1: Thinking like an economist
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/21216
Sample Questions
Q1) Which of the following questions would not be studied by a microeconomist but would be studied by a macroeconomist?
A)Why do national economies grow?
B)What percentage of consumer income is spent on entertainment?
C)Why do workers prefer a 4-day working week?
D)What happens to worker productivity when a job shifts to a 4-day working week?
E)How is the electricity industry harmed by the passage of new clean air legislation?
Answer: A
Q2) Normative economics deals with _____ and positive economics deals with _____.
A)what was, what is
B)fiction, fact
C)microeconomics, macroeconomics
D)negative aspects, positive aspects
E)opinions, facts
Answer: E
Q3) Economics studies decision making by a single individual.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Production possibilities and opportunity cost
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/21217
Sample Questions
Q1) Which of the following statements is false?
A)Marginal analysis is an examination of the effects of additions or subtractions from a current situation.
B)The production possibilities curve shows the unattainable combination of two outputs that an economy can produce, given its available resources and technology.
C)Technology is the body of knowledge and skills applied to how goods are produced.
D)Economic growth is illustrated as an outward shift of the production possibilities curve.
Answer: B
Q2) In Exhibit 2-10,which of the following points on the production possibilities curve are unattainable with the resources and technology currently available?
A)A, B, C, U.
B)A, B, C, D, U.
C)E and W.
D)B, C, D, U.
E) A, B, C, D.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: Market demand and supply
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/21218
Sample Questions
Q1) How do retailers react to a surplus?
A)The surplus has no effect on retailers.
B)Competition forces sellers to reduce their prices.
C)Competition forces retailers to offer more goods.
D)The surplus will force sellers to increase their prices.
Answer: B
Q2) There is a technological advance in the production of digital watches.This will cause:
A)demand to increase.
B)supply to increase.
C)demand to decrease.
D)supply to decrease.
E)the price to increase.
Answer: B
Q3) Which of the following will cause a movement along the supply curve?
A)An increase or decrease in the cost of raw materials.
B)An increase in labour costs.
C)Changes in the cost of the machinery used to make a good.
D)Changes in the market price of a good, other things being constant.
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Markets in action
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/21219
Sample Questions
Q1) If the equilibrium price of aspirins is $5.50 for 250 tablets and the government imposes a price ceiling at $5.00 for 250 tablets,the eventual result will be:
A)a shift in the demand curve to the right.
B)a shift in the supply curve to the right.
C)an accumulation of inventories of unsold aspirins.
D)a shortage of aspirin.
Q2) Which of the following is the best example of a public good?
A)Potatoes.
B)Government building.
C)Lighthouse.
D)Commercial TV.
Q3) Suppose that the equilibrium price is $20 and the government sets the price floor at $30.The result of this price floor is:
A)negligible.
B)equilibrium.
C)surplus.
D)shortage.
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Elasticity of demand and supply
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/21220
Sample Questions
Q1) The smaller the proportion of your income is spent on a good,the more likely it is to be:
A)relatively inelastic.
B)highly elastic.
C)perfectly elastic.
D)unit elastic.
Q2) The longer the time period under study:
A)the more elastic is the price elasticity of demand.
B)the less sensitive consumers will be to price changes.
C)the less adjustment consumers will make to price changes.
D)the more inelastic is the price elasticity of demand.
E)the more likely any given price cut will result in a smaller reaction by the consumer.
Q3) The income elasticity of demand for shoes is estimated to be 1.5.We can conclude that shoes:
A)have a relatively steep demand curve.
B)have a relatively flat demand curve.
C)are a normal good.
D)are an inferior good.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Production costs
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/21221
Sample Questions
Q1) Which of the following statements is true?
A)TC = TFC - TVC.
B)AVC = TC/Q.
C)TFC = TC - TVC.
D)MC equals the change in ATC divided by the change in Q.
Q2) As shown in Exhibit 6-3,what was the marginal product of labour when the second worker was hired?
A)50.
B)100.
C)150.
D)175.
Q3) The marginal cost:
A)always rises in the short run.
B)always falls in the long run.
C)rises when the law of diminishing returns is being experienced.
D)falls when the law of diminishing returns is being experienced.
Q4) Suppose a firm earns an accounting profit.This means the firm also earns a positive economic profit.
A)True
B)False
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Perfect competition
Available Study Resources on Quizplus for this Chatper
125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/21222
Sample Questions
Q1) If a firm can easily enter and exit the market it operates in which market?
A)Perfectly competitive.
B)Monopolistically competitive.
C)Monopolistic.
D)Oligopolistic.
Q2) If ATC = $20,AVC = $12,MR = $15 and MC = $15,then the result for the perfectly competitive firm would be:
A)making a short-run loss.
B)making a short-run profit.
C)breaking even.
D)shutting down.
E)unclear as there is not enough information.
Q3) Assume that a firm's marginal revenue just barely exceeds marginal cost.What should the firm do under these conditions?
A)Expand output.
B)Contract output.
C)Maintain output.
D)There is insufficient information to answer the question.
To view all questions and flashcards with answers, click on the resource link above.
9
Chapter 8: Monopoly
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/21223
Sample Questions
Q1) A monopolist is always earning economic profits but a perfectly competitive firm is not.
A)True
B)False
Q2) A monopolist maximises total revenue.
A)True
B)False
Q3) In Exhibit 8-3,how much vaccine should GeneTech produce to maximise its profit?
A)300 doses per hour.
B)400 doses per hour.
C)Between 400 and 500 doses per hour.
D)500 doses per hour.
Q4) The only dentist in a small isolated country town is an example of a/an: A)oligopoly.
B)monopolistically competitive firm.
C)monopoly.
D)competitive firm.
Q5) Monopolies can charge any price they like and sell as much as they want.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Monopolistic competition and oligopoly
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/21224
Sample Questions
Q1) In order to make oil profits as large as possible,OPEC meets to set oil production quotas for its members.OPEC is best classified as a:
A)monopoly.
B)cartel.
C)kinked demand industry.
D)price leadership industry.
Q2) Monopolistic competition is inefficient because:
A)firms earn positive economic profits.
B)the firms' marginal costs and marginal revenues are not equal.
C)firms have excess capacity in the long run.
D)entry is difficult.
Q3) Cartel members have an incentive to cheat on the cartel because:
A)the cartel does not maximise profits.
B)the cartel price is the competitive price.
C)each member's output quota is too high.
D)each members MR is not equal to the cartel's MC.
E)the industry profit would be higher under competitive conditions.
Q4) The number of sellers is the largest in oligopoly.
A)True
B)False
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Policy issues: resource taxes and climate change
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/21225
Sample Questions
Q1) Government used the super profits tax revenue to restructure the out-of-date industries.
A)True
B)False
Q2) Looking at Exhibit 10-4,suppose that there is a slowdown in the economy.That might lead to:
A)an increase in demand for carbon intensive outputs.
B)a decrease in demand for carbon production.
C)an increase in demand for emissions.
D)a decrease in demand for carbon intensive outputs.
Q3) If the price is $100 per tonne and the royalty is $10 per tonne,the marginal revenue of the mineral producer will be:
A)$90 for each tonne produced.
B)$90 for each tonne sold.
C)$110 for each tonne sold.
D)$100 for each tonne produced.
Q4) In Australia today,all minerals in the ground are owned by mining companies.
A)True
B)False
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Measuring the size of the economy
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/21226
Sample Questions
Q1) One way that an economy can grow in the long run is by:
A)people saving some of their income and having it invested in capital goods by firms.
B)people spending more of their income on consumption and less on saving.
C)governments running continual budget deficits.
D)people consuming more than they earn.
Q2) Real GDP measures a value of a specific basket of goods produced in a given period.
A)True
B)False
Q3) Income is an example of a _____,and the money in my bank account is a _____.
A)stock; flow
B)stock; stock
C)flow; stock
D)flow; flow
Q4) Which of the following expenditures would be included in GDP for this year?
A)The purchase of a new car.
B)The purchase of a new tyre by Holden for a new car.
C)The purchase of a used car.
D)All of these.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Business cycles and economic growth
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/21227
Sample Questions
Q1) Contrary to the original Solow model,many economists today claim that technological progress may be _____ to long-term economic growth.
A)exogenous
B)endogenous
C)harmful
D)beneficial
E)not related
Q2) Which of the following statements is incorrect regarding the Solow growth model?
A)Increases in living standards are not necessarily guaranteed in an economy.
B)The optimal saving rate is achieved when saving per person is maximised.
C)The optimal saving rate is achieved when consumption per capita is maximised.
D)The optimal saving rate is derived under the assumption that technology is constant.
Q3) One of the goals of macroeconomic policy should be:
A)to keep inflation at zero per cent.
B)to reduce the unemployment rate to zero.
C)to increase the productive potential of the economy.
D)to continually increase the saving rate.
To view all questions and flashcards with answers, click on the resource link above.
14
Chapter 13: Inflation and unemployment
Available Study Resources on Quizplus for this Chatper
121 Verified Questions
121 Flashcards
Source URL: https://quizplus.com/quiz/21228
Sample Questions
Q1) The real interest rate is the annual percentage amount of money that is earned on a sum loaned or deposited in a bank.
A)True
B)False
Q2) Which one of the following people is not a member of the labour force?
A)Relief teacher who works 2 hours a week.
B)A person who works 30 hours a week at McDonalds and goes to school at night.
C)The man who was fired last week and is searching for a new job.
D)A full-time student who devotes all her time to her classes.
E)A professional athlete.
Q3) Suppose the consumer price index (CPI)stands at 250 this year.If the inflation rate is 10 per cent,then next year's CPI will equal:
A)250.
B)260.
C)275.
D)500.
Q4) To be counted as unemployed,a person must be retired.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: A simple model of the macro economy
Available Study Resources on Quizplus for this Chatper
134 Verified Questions
134 Flashcards
Source URL: https://quizplus.com/quiz/21229
Sample Questions
Q1) As income grows,the consumption:
A)decreases.
B)grows the same as income.
C)grows by less than income.
D)grows by more than income.
Q2) According to the interest-rate effect,as the price level:
A)rises, people feel poorer and buy less.
B)rises, Australian products become more expensive and foreigners buy fewer Australian goods.
C)rises, interest rates fall and people buy less.
D)rises, interest rates rise and people buy less.
E)falls, interest rates fall and people buy less.
Q3) An increase in the price level caused by a rightward shift of the aggregate demand curve is called:
A)cost-push inflation.
B)supply-shock inflation.
C)demand-shock inflation.
D)demand-pull inflation.
E)demand-push inflation.
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: The monetary and financial system
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/21230
Sample Questions
Q1) Assume a fixed demand for money curve and the RBA decreases the money supply.In response,people will:
A)sell bonds, thus driving up the interest rate.
B)sell bonds, thus driving down the interest rate.
C)buy bonds, thus driving up the interest rate.
D)buy bonds, thus driving down the interest rate.
Q2) Which of the following statements is false?
A)Round stones with holes in the centre can serve as money.
B)Money eases the process of exchanging goods and services in a modern economy.
C)Money serves as a measure of value only when it is backed by gold or silver.
D)Money is used as a measure of the relative value of goods and services in an economy.
Q3) Credit cards fail to meet the store-of-value criterion.
A)True
B)False
Q4) The Australian Prudential Regulation Authority's role is to:
A)control inflation.
B)monitor interest rates.
C)monitor Australia's deposit-taking institutions.
D)uphold consumer protection.
Page 17
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: Macroeconomic policy I: monetary policy
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/21231
Sample Questions
Q1) All economists would agree that velocity:
A)may be variable over the long term.
B)may be variable over the short term.
C)cannot be defined over the short term.
D)may be stable over the long term.
Q2) Monetarists argue that using active discretionary monetary policy is dangerous because it is subject to:
A)information lags.
B)long-term policy determination lags.
C)short-term policy effectiveness lags.
D)information, policy determination and policy effectiveness lags.
Q3) Financial innovation in Australia during the 1980s led to:
A)the demand for money increasing.
B)the velocity of money becoming more stable.
C)the velocity of money becoming more volatile.
D)the demand for money becoming more stable.
Q4) 'Smoothing' operations by the RBA are intended to provide a long-term solution for a volatile foreign exchange market.
A)True
B)False
Page 18
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Macroeconomic policy II: fiscal policy
Available Study Resources on Quizplus for this Chatper
123 Verified Questions
123 Flashcards
Source URL: https://quizplus.com/quiz/21232
Sample Questions
Q1) Suppose inflation is a threat because the current aggregate demand curve will increase by $600 billion at any price level.If the marginal propensity to consume is 0.75,federal policymakers can follow Keynesian economics and restrain inflation by:
A)decreasing tax revenues by $600 billion.
B)decreasing transfer payments by $200 billion.
C)increasing tax revenues by $200 billion.
D)increasing government purchases by $150 billion.
Q2) During the Reagan administration,the Laffer curve was used to argue that:
A)the supply-side effects of tax cuts are relatively small.
B)discretionary tax cuts are unwise because they create stagflation.
C)lower income tax rates could increase tax revenues.
D)a 'flat tax' would simplify the tax code and stimulate economic growth.
Q3) If government deficits stimulate the private economy:
A)'crowding out' must be zero.
B)investment may rise.
C)'crowding out' is more than offset by increases in investment demand.
D)'crowding out' and 'crowding in' cancel each other out.
E)interest rates must fall.
To view all questions and flashcards with answers, click on the resource link above.
19
Chapter 18: International trade and finance
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/21233
Sample Questions
Q1) If nation A has an absolute advantage over nation B in the production of a product,this implies that:
A)it requires fewer resources in A to produce the good than in B
B) the cost of producing the good in terms of some other good's production that must be sacrificed is lower in A than in B.
C) nation B could not benefit by engaging in trade with A.
D) nation A should acquire this product by trading with B.
E) nation A could not benefit by engaging in trade with B.
Q2) Which of the following would be included in Australia's capital account?
A)The sale of wheat to Britain.
B)The purchase of cars from Japan.
C)Interest repayments on a loan from a US bank.
D)Investors from Papua New Guinea buy a cattle station in Queensland, Australia.
Q3) In terms of production possibilities curves,the benefits of trade between two nations is that each nation moves to:
A)a lower standard of living.
B)a more expansive consumption possibilities combination.
C)a higher standard of living.
D)a lower consumption possibilities combination.
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 19: Applying graphs to economics
Available Study Resources on Quizplus for this Chatper
37 Verified Questions
37 Flashcards
Source URL: https://quizplus.com/quiz/21215
Sample Questions
Q1) In Exhibit 1A-1,as X increases along the horizontal axis,corresponding to points A-B on the line,the Y values increase.The relationship between the X and Y variables is: A)direct. B)inverse.
C)independent. D)variable.
Q2) In Exhibit 1A-5,the slope of the straight line A-D is: A)zero.
B)1.
C)1/2.
D)-1.
Q3) A direct relationship is a relationship between two variables in which they move in different directions (if one increases,the other decreases). A)True
B)False
Q4) Direct relationships are illustrated using upward-sloping lines and curves. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 21