Online Test — Introduction to Macroeconomics
15 Questions • 15 min • Chapter MCQ
15:00
Question 1 of 15
Macroeconomics studies the:
Price of one good
Economy as a whole
Single firm
One consumer
Explanation: Macroeconomics studies the economy as a whole.
Question 2 of 15
Modern macroeconomics is associated mainly with:
Adam Smith
J. M. Keynes
Alfred Marshall
Ricardo
Explanation: Keynes is the founder of modern macroeconomics.
Question 3 of 15
The study of the general price level (inflation) is part of:
Microeconomics
Macroeconomics
Price theory
Cost theory
Explanation: The general price level is a macroeconomic aggregate.
Question 4 of 15
'Micro studies the trees, macro studies the:'
Forest
Leaves
Roots
Seeds
Explanation: Macro looks at the whole forest (the economy).
Question 5 of 15
In the two-sector circular flow, the two sectors are:
Households and firms
Government and banks
Imports and exports
Rich and poor
Explanation: The two-sector model has households and firms.
Question 6 of 15
Households supply factor services through the:
Product market
Factor market
Stock market
Money market
Explanation: Factor services are supplied through the factor market.
Question 7 of 15
Firms pay households ____ for their factor services.
Factor incomes (rent, wages, interest, profit)
Goods only
Taxes
Subsidies
Explanation: Firms pay factor incomes for factor services.
Question 8 of 15
Households buy goods from firms through the:
Factor market
Product market
Bond market
Forex market
Explanation: Goods are bought in the product market.
Question 9 of 15
A variable measured at a point of time is a:
Flow
Stock
Rate
Ratio
Explanation: A stock is measured at a point of time.
Question 10 of 15
A variable measured over a period of time is a:
Stock
Flow
Constant
Point
Explanation: A flow has a time dimension (per period).
Question 11 of 15
Which is a stock variable?
Income per month
Wealth
Investment per year
Expenditure per week
Explanation: Wealth is measured at a point of time — a stock.
Question 12 of 15
Which is a flow variable?
Capital
National income
Money held now
Population on a date
Explanation: National income is measured per period — a flow.
Question 13 of 15
Adding the government to households and firms makes it a:
Two-sector economy
Three-sector economy
One-sector economy
Closed market
Explanation: Households + firms + government = three-sector economy.
Question 14 of 15
An economy that includes the external (foreign) sector is called:
A closed economy
An open economy
A barter economy
A planned economy
Explanation: Including foreign trade makes it an open economy.
Question 15 of 15
Agriculture and mining belong to the ____ sector.
Primary
Secondary
Tertiary
External
Explanation: Agriculture and mining are primary-sector activities.