MACROECONOMIC MCQ REVISION
OCTOBER 2020
Multiple Choice Questions
Topic: Intro to Macro
1. The term "productivity"
A. Means the same thing as "efficiency."
B. Is seldom used by economists, as its meaning is not precise.
C. Refers to the quantity of goods and services produced from each unit of labour input.
D. Refers
. to the variety of goods and services from which households can choose when they shop.
2. What is the most important factor that explains differences in living standards across
countries?
a. the quantity of money
b. the level of unemployment
c. productivity
d. equality
3. An increase in the overall level of prices in an economy is referred to as
a. The income effect.
b. Inflation.
c. Deflation.
d. The substitution effect.
,4. Large or persistent inflation is almost always caused by
A Excessive government spending.
B Excessive growth in the quantity of money.
COf reign competition.
D
H higher-than-normal levels of productivity.
5. Macroeconomics is a study of ________________-
A. The behaviour of individual firms
B. The entire economy
C. General price levels
D. Government units
6. The circular flow of economic activity is a model of the ________________.
A. Flow of goods, resources, payments and expenditures among various sectors in
the economy.
B. Influences of the government on business behaviour.
C. Role of unions and the government on the economy
D. Influences of businesses on consumers.
7. Government policies regarding taxes and expenditures are called_____________.
a. Fiscal policies
b. Growth policies
c. Monetary policies
d. Supply side policies
8. The branch of economics that examines the functioning of individual industries and
the behaviour of individual decision-making units is ____________.
a. Microeconomics
b. Macroeconomics
c. Positive economic
d. Normative economics
, 9. Which of the following is not one of the three major concerns of macroeconomics?
a. Inflation
b. Unemployment
c. Output growth
d. Equitable Distribution of Income
10. Macroeconomics is concerned with the study of _______________
a. Malaysian’s response towards changes in the price of sugar
b. Production methods and costs
c. The effects of reduction of wages in the service sector
d. The general price level
OCTOBER 2020
Multiple Choice Questions
Topic: Intro to Macro
1. The term "productivity"
A. Means the same thing as "efficiency."
B. Is seldom used by economists, as its meaning is not precise.
C. Refers to the quantity of goods and services produced from each unit of labour input.
D. Refers
. to the variety of goods and services from which households can choose when they shop.
2. What is the most important factor that explains differences in living standards across
countries?
a. the quantity of money
b. the level of unemployment
c. productivity
d. equality
3. An increase in the overall level of prices in an economy is referred to as
a. The income effect.
b. Inflation.
c. Deflation.
d. The substitution effect.
,4. Large or persistent inflation is almost always caused by
A Excessive government spending.
B Excessive growth in the quantity of money.
COf reign competition.
D
H higher-than-normal levels of productivity.
5. Macroeconomics is a study of ________________-
A. The behaviour of individual firms
B. The entire economy
C. General price levels
D. Government units
6. The circular flow of economic activity is a model of the ________________.
A. Flow of goods, resources, payments and expenditures among various sectors in
the economy.
B. Influences of the government on business behaviour.
C. Role of unions and the government on the economy
D. Influences of businesses on consumers.
7. Government policies regarding taxes and expenditures are called_____________.
a. Fiscal policies
b. Growth policies
c. Monetary policies
d. Supply side policies
8. The branch of economics that examines the functioning of individual industries and
the behaviour of individual decision-making units is ____________.
a. Microeconomics
b. Macroeconomics
c. Positive economic
d. Normative economics
, 9. Which of the following is not one of the three major concerns of macroeconomics?
a. Inflation
b. Unemployment
c. Output growth
d. Equitable Distribution of Income
10. Macroeconomics is concerned with the study of _______________
a. Malaysian’s response towards changes in the price of sugar
b. Production methods and costs
c. The effects of reduction of wages in the service sector
d. The general price level
