vu eco403 Final Term - Quiz No.2
vu eco403 Macroeconomics Quiz
This quiz belongs to book/course code vu eco403 Macroeconomics of vu organization. We have 22 quizzes available related to the book/course Macroeconomics. This quiz has a total of 10 multiple choice questions (MCQs) to prepare and belongs to topic Final Term. NVAEducation wants its users to help them learn in an easy way. For that purpose, you are free to prepare online MCQs and quizzes.
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Question 1: The number of people unemployed equals:
The number of people employed minus the labor force
The labor force plus the number of people employed
The number of people employed divided by the labor force
The labor force minus the number of people employed
Question 2: The deposits that banks received but do not lent out are known as:
Reserves
Excess reserves
Required reserves
All of the given options
Question 3: The use of central bank policies to influence the level of economic activity is called:
Banking and finance policy
Financial market policy
Monetary policy
Trade policy
Question 4: Aggregate supply is the relation between real production and:
The price level
Aggregate expenditures
Foreign trade
The exchange rate
Question 5: The relationship between the level of prices and inflation is:
The higher the price level, the lower the rate of inflation.
The higher the rate of increase in the price level, the higher the rate of inflation.
The higher the rate of increase in the price level, the lower the rate of inflation.
The higher the price level, the higher the rate of inflation.
Question 6: __________ depends on the difference between the Marginal Product of Capital and the cost of capital.
Net investment
Depreciation investment
Inventory investment
Gross investment
Question 7: Economists decompose the impact of an increase in the real interest rate on consumption into two effects: an income effect and a __________.
substitution effect
addition effect
cross effect
Multiplication effect
Question 8: What effect is working when the price of a good falls and consumers tend to buy it instead of other goods?
The diminishing marginal utility effect
The ceteris paribus effect
The income effect
The substitution effect
Question 9: Country risk premium is negatively related with:
Investment
Consumption
Income
Government purchases
Question 10: If the currency-deposit ratio is 10 % and the total amount of deposits is Rs.100 billion, then the money supply is equal to:
Rs. 90 billion
Rs. 110 billion
Rs. 1,000 billion
Rs.10 billion
