Wednesday, February 17, 2021

LET #SOCIALSTUDIES /SCIENCE REVIEWER - MACROECONOMICS


 (Image from https://www.wallstreetmojo.com/macroeconomics/)

1. The study of how households and firms make decisions and how they interact in markets.

A. Economics

B. Microeconomics

C. Macroeconomics

D. Market economy

 

2. In the classical model, it is thought that the long-run and short-run aggregate supply curves are both _______.

A. vertical

B. horizontal

C. positively sloped

D. negatively sloped

 

3. It measures the monetary value of the flow of output of goods and services produced in an economy over a period of time.

A. Gross Domestic Product

B. Gross National Product

C. Cost of Production

D. National Income

 

4. The table that shows the relationship between the price of a good and the quantity demanded.

A. Demand schedule

B. Law of Demand

C. Quantity Demanded

D. Demand Curve

 

5. A good for which, other things equal, an increase in income leads to a decrease in demand.

A. Substitute good

B. Normal good

C. Inferior good

D. Complement good

 

6. A situation in which the market price has reached the level at which quantity supplied equals quantity demanded.

A. Inflation

B. Deflation

C. Equilibrium

D. Surplus

 

7. It is the period of falling real GDP, i.e. negative economic growth, for a period of 6 months or more.

A. Inflation

B. Deflation

C. Depression

D. Recession

 

8. It is the total income that is earned by a country's factors of production regardless of where the assets are located.

A. Gross Domestic Product

B. Gross National Product

C. Cost of Production

D. National Income

 

9. The short-run Phillips curve represents the relationship between the unemployment rate and the rate of change in aggregate ________ level.

A. demand

B. supply

C. price

D. tax

 

10. The Pantawid Pamilyang Pilipino Program (4Ps) implemented by the DSWD is what form of government expenditure?

A. Transfer Payment

B. Capital

C. Current

D. Incidental

 

11. There are two main instruments of fiscal policy. They are government spending and taxation.

A. Only the first statement is correct.

B. Only the second statement is correct.

C. Both statements are correct.

D. None of the statements is correct

 

12. It is the difference between government spending & taxation.

A. National Deficit

B. National Surplus

C. A & B

D. None of the above

 

13. A contractionary fiscal policy is a policy that _________.

A. reduces aggregate demand by increasing taxes

B. increases aggregate demand by dcreasing taxes

C. increases aggregate demand by increasing government purchases

D. reduces aggregate demand by decreasing government purchases

 

14. An increase in the supply of money will lead to ___ in equilibrium real GDP and ___ in equilibrium interest rate.

A. an increase; a decrease

B. a decrease; an increase

C. an increase; an increase

D. a decrease; a decrease

 

15.  Which of the following is NOT a contractionary monetary policy?

A. decreasing the money supply

B. decreasing government taxes

C. increasing interest rates

D. decreasing aggregate demand

ANSWERS:

1B  2A  3D  4A  5C  6C  7D  8B  9C  10A  11C  12C  13D  14A  15B

 

 

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