MCQ Question 'No need explanation'

1.What is the meaning of equilibrium in macroeconomics?

A. Aggregate demand is more than aggregate supply.

B.Aggregate demand is less than aggregate supply.

C.Aggregate demand is equal to aggregate supply.

D.Total value of output produced is more than total value of expenditure.

2.All else constant, decrease in aggregate demand tend to cause increases in

A. Employment.

B.Nominal interest rate.

C.GDP and National income.

D.Unemployment rate.

3.When a country's gross national product (GNP) is smaller than its gross domestic product (GDP), that means that its

A.Exports are less than its import.

B.Factor income from abroad is less than factor income paid abroad.

C.Net factor income from abroad is positive.

D.Subsidies are less than indirect taxes.

4.Which of the following is the most appropriate fiscal policy for recession?

A. Decrease on government spending.

B.Increases in interest rate.

C.Decreases in tax rate.

D.Increase in tax rate.

5."In Malaysia, Ringgit is used to measure the value of goods and services." The statement is refer to __________.

A. money as a store of value

B.money as a measure of value

C.money as the medium of exchange

D.money as the standard of deferred payment

6.If Syura writes a check drawn on a public bank to purchase a new digital camera, she is employing money as __________.

A.a store of value

B.a measure of value

C.a medium of exchange

D.None of the above

7.Providing temporary advances to the government during deficit shows the function of the central bank as a __________.

A. national financial advisor

B.producer of national currency

C.banker to financial institutions

D.monitor of banks' financial operations

8.The main purpose of Bank Negara Malaysia is to __________.

A.invest in property

B.print money

C.grant loans

D.accept deposits from the public banks

9.The central bank imposes statutory reserves on commercial banks in order to

A.influence the ability of commercial banks to provide loans

B.prevent commercial banks from collecting excess internet

C.prevent commercial banks from hiding money

D.generate income for commercial banks from interest

10.A fresh law graduate searching for a place to begin his practice is an example of __________.

A.frictional unemployment

B.structural unemployment

C.seasonal unemployment

D.cyclical unemployment

11.Which of the following will not influence a surplus in the basic balance?

A. A surplus in the balance of short-term capital.

B.A positive balance of the service account.

C.A positive value of the trade balance.

D.None of the above.

12.Where there is an overall deficit in balance of payments, the account is equalised ________.

A.by using the nation's foreign reserves

B.by collecting tax

C.by exporting local products

D.by fixing exchange rates

13.There are many reasons why a poor country may fail to catch up with a rich neighbour. Which of the following is not one of these reasons?

A. The rich country may have more human capital.

B.The poor country may have a higher savings ratio.

C.The rich country may be more open to the world economy.

D.The poor county may have more rapid population growth.