Macroeconomic

1. Which of the following is not the area of macroeconomics?

A. Unemployment rate
B. Market structure
C. Inflation rate
D. Foregin exchange rate
2. Which of the following is a macroeconomics objectives?
A. Unemployment
B. Extremely high economic growth
C. Employed all available resources
D.Inflation.
3. The goals of macroeconomics objective?
A. Economic stagnation
B. Higher price level
C. Imbalance in balance of payment
D. Full employment
4. Macroeconomics theory studies the following EXCEPT…
A. How to determine international trade activities.
B. How to determine the unemployment and inflation rate.
C. How to determine the equilibrium income in an economy.
D. How to determine type and quality of goods to produce.
5. Macroeconomics studies the economy from viewpoint of…
A. The firms
B. The households
C. The government
D. The entire economy
6. Macroeconomics is least mentioned
A. Changes in the relative prices of goods
B. A changed in the general price level
C. Unemployment
D. Standard of living
7. Positive economics aims
A. Describe and explain events and economic issues objectively, based
on actual evidence.
B. Explain the behavior of economic actors
C. Presents the dominant viewpoint in the current state.
D. Justify state economic policies with actual data.
8. Which of the following is a problem of macroeconomic?
A. How does rising sugar prices affect the confectionery market?
B. How does a government budget deficit affect interest rate?
C. What factors determine the level of output of a business?
D. Cause of price decline in agricultural markets
9. Which of the following is a positive economic statement?
A. The government should increase the minimum wage to provide with a living wage.
B. Higher taxes on the wealthy should be implemented to reduce income inequality.
C. Government - funded healthcare surges public expenditures.
D. The central banks should lower interest rates to stimulate economic growth.
10. Which of the following statements gives a true picture of the central problem of an
economy?
A. How to product.
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B. How to distribute the produced goods
C. What to produce
D. All of the above.
11. Which of the following deals with macroeconomics?
A. Individual income.
B. Individual output
C. Individual savings
D. General price level.
12. Which of the following statements are true about the study of macroeconomics?
A. It is a study of economics that deals with households, government, firms and demand-supply.
B. It is a study of economics that deals with households, government, firms and the external sector.
C. It is a study of economics that deals with price level, profit, expenditure and cost.
D. None of above.
13. Economics that passes judgment, or provides advice on policy action is called…
A. …position economics
B. …negative economics.
C. …normative economics.
D. …descriptive economics.
14. Which of the following is a position macroeconomics statement?
A. The price of steel declined by 3% last year.
B. The government should reduce the tax burden to help small business.
C. The productivity of hospitably workers increased by 1% in 2016.
D. The gross profit off all Australian businesses was $182 million last year.
15. Which of the following is not macroeconomics?
A. Inflation
B. Unemployment
C. The level of output in economy.
D. Level of wages in government industry.
16. Which of the following is NOT a method to calculate Gross Domestic Product?
A. Diminishing cost method
B. Expenditure method
C. Product method
D. Income method
17. Which organization calculates the Gross Domestic Product for Viet Nam?
A. General Statistic Office (GSO)
B. Department of General Economy (DGE)
C. Ministry of Industry and Trade (MOIT)
D. None of the above.
18. Which of the following is a part of the Gross National Product (GNP)?
A. Export
B. Money earned by a resident abroad.
C. Import
D. All of the above.
19. The net value of Gross Domestic Product after deducting depreciation from it is….
A. Net Domestic Product
B. Net National Product
C. Disposable income.
D. Gross National Product.
20. When depreciation is deducted from Gross National Product, the net value is…..
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A. Net Domestic Product
B. Net National Product
C. Disposable income.
D. Gross National Product.
21. The average income of a country is known as….
A. Real National Income
B. Per Capital Income
C. Disposable Income
D. None of the above
22. Which of the following is a method of measuring National Income?
A. Expenditure method
B. Product method
C. Income method
D. All of the above
23. Transfer payments refer to payments that are made…..
A. As compensation to employee.
B. Without any exchange of goods and services.
C. To workers on transfer from one job to anther.
D. None of the above
24. Which of the following is a limitation of the Gross Domestic Product?
A. It fails to indicate the sustainability of a nation’s growth
B. It doesn’t consider the impact of economic activities on human health and the government.
C. It doesn’t include non-market transactions.
D. All of the above.
25. Which of the following statements is true about Nominal Gross Domestic Product?
A. It shows a more accurate picture of a country’s economy as compared to real GDP?
B. It is calculated by considering the current prices.
C. It is calculated by considering the base prices.
D. None of the above.
26. which of the following is added in calculating Gross Domestic Product?
A. A teacher teaching their child
B. The value of resale of old shares
C. An artisan constructing a new house
D. None of the above
27. While using expenditure to calculate Gross Domestic Product, consumption….
A. Include consumer spending on durable and non-durable goods as well as services.
B. Include consumer spending on durable and non-durable goods but excludes services.
C. Include purchases by business firms
D. Include purchases by business firms spending on durable and non-durable goods as well as
services.
28. Which of the following is NOT a part of Gross Domestic Product?
A. Life expectancy
B. Public education
C. National defence
D. None of the above
29. The difference between Nominal and Real Gross Domestic Product is that….
A. Nominal GDP uses price levels of some base year
B. Nominal GDP uses actual price levels
C. Real GDP includes services while Nominal GDP only considers goods
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D. None of the above.
30. Real GDP is a measure of a country’s…..
A. …. wealthy
B. ….money
C. ….economic transactions
D. ….physical output.
31. Which of the following would definitely cause an increase in nominal GDP but not a
change real GDP in Vietnam?
A. The quantity of goods produced increases; prices stay the same
B. The quantity of goods produced increases; prices decrease.
C. The quantity of goods produced decreases; prices stay the same
D. The quantity of goods produced stay the same; prices increase.
32.

33. The best measure for comparing a country’s aggregate output over time is
A. Nominal GDP
B. Real GDP
C. Nominal GDP per capita
D. Real GDP per capita
34. Use the information provided in the table below for an economy that produces only apples and
oranges. Assume year 1 is the basic year.
Year 1 Year 2
Quantity of Apple 3000 4000
Price of Apple 0.2 0.30
Quantity of Oranges 2000 3000
Price of Oranges 0.4 0.5

a, what was the value of real GDP of Year 1?

b, what was the value of real GDP of Year 2?

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c, what is the GDP Defator for year 2?

35.

36.

37. Why does the measurement of a country’s GDP not include the value of all intermediate good
used in the production of a finished good?
A. B/c the value of intermediate goods would be over - counted, and GDP would appear much
smaller than it actually is
B. B/c the value of finished goods does not include the value of intermediate goods.
C. B/c the value of intermediate goods would be over - counted, and GDP would appear much large
than it actually is
D. B/c intermediate goods aren’t always produced within a country’s borders, do we cannot count
them towards the country’s GDP.
38. Spending by households is counted in the consumption category of gross domestic product, but
there is one kind of household spending that is included in the investment category instead

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Which type of household spending is recorded as investment toward a country’s gross domestic
product?
A. The purchase of new house
B. The purchase of home computers
C. The purchase of new cars
D. The purchase of government bonds
39. Suppose an artist draws a painting, for which he spends $200 on painting materials. The artist
then exposes the painting on his website and it gets sold at $500. Using the sum-of-value-added
method of calculating GDP, which of the following is most likely the value added by the artist?
A. $200
B. $300
C. $500
D. $700

40. Use the information below to calculate GDP.

Consumer spending = $200 million
Imports = $50 million
Investment spending = $55 million
Exports = $45 million
Local government spending = $120 million
Income taxes = $100 million
Defense expenditure = $80 million

A. $450 million B. $460 million C. $550 million D. $650 million

41. An Australian wheat farmer sold some wheat to a local gristmill for $2. The mill milled it into
flour and sold it to Nanna for $6. Nanna, who runs a stall at the Southbank Markets, then turned the
flour into noodles and sold them for $14
How much was contributed to Australia’s GDP?
A. $2 B. $6 C. $14 D. $10

42. An Australian wheat farmer sold some wheat to a local gristmill for $2. The mill milled it into
flour and sold it to Nakamoto for $6. Nakamoto, who runs a stall at the Southbank Markets, then
turned the flour into noodles and sold them for $14.
If Nakamoto is your nanna and rather than selling the noodles, she gives them to you b/c you’re a
poor student. How much was contributed to Australia’s GDP?
A. $2 B. $6 C. $14 D. $10

43. An Australian wheat farmer sold some wheat to a local gristmill for $2. The mill milled it into
flour and sold it to Nakamoto for $6. Nakamoto, who runs a stall at the Southbank Markets, then
turned the flour into noodles and sold them for $14.
If the gristmill is owned by a Chinese company, how much was contributed to Australia’s GDP?
A. $2 B. $6 C. $14 D. $10
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44. An Australian wheat farmer sold some wheat to a local gristmill for $2. The mill milled it into
flour and sold it to Nakamoto for $6. Nakamoto, who runs a stall at the Southbank Markets, then
turned the flour into noodles and sold them for $14.
If the gristmill is located in China, how much was contributed to Australia’s GDP?
B. $2 B. $6 C. $14 D. $10

45.

46. ….………………. is a measurement of the total amount of demad for all finished goods and
services produced in an economy.
A. Aggregate - demand
B. Aggregate - demand curve
C. Aggregate - supply
D. Aggregate - supply curve.
47. According to the interest rate effect, aggregate demand slopes downward (negatively) because:
A. Lower prices increase money holding, decrease lending, interest rates rise, and investment
spending falls
B. Lower prices increase the value of money holding and consumer spending increases
C. Lower prices decrease the value of money holding and consumer spending decreases
D. Lower prices reduce money holding, increase lending, interest rates fall, and investment
spending increases.
48. In short run macroeconomic analysis, demand is often viewed as the driving force. Which
component of aggregate demand is often regarded as being independent of economic conditions and
thus exogenous in the model?
A. Consumption and private spending
B. Investment, saving
C. Net exports
D. Government spending and tax receipts
49. Which of the following is NOT a reason why the aggregate demand curves slope downward?
A. The exchange rate effect
B. The wealth effect
C. The classical monetary neutrality effect
D. The interest rate effect
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50. ….……….show the quantity of final goods and services that households, firms, the government,
and customers abroad want to buy at each price level
A. Aggregate - demand
B. Aggregate - demand curve
C. Aggregate - supply
D. Aggregate - supply curve
51. ….………refers to the total supply of final goods and services produced by firms that they paln
to sell at a certain price within a specific time.
A. Aggregate - demand
B. Aggregate - demand curve
C. Aggregate - supply
D. Aggregate - supply curve
52. Which event shifts the short-run aggregate supply curve to the right?
A. A decrease in money supply
B. A decrease in oil prices
C. An increase in government spending on military equipment
D. An increase in price expectations
53. Which is the following would NOT cause a shift in AD curve?
A. A reduction in income tax
B. A reduction in interest rates
C. An increase in government spending
D. A fall in the cost of production
54. When the price level in the economy changes there will a …….. the aggregate demand curve
A. Left
B. Right
C. Movement along
D. Shift
55. Which of the following would NOT cause a SHIFT in AS?
A. The level of government spending
B. The costs of the factors of production
C. Incentives
D. The structure of the economy
56. Which of the following would NOT cause a SHIFT in long - run aggregate supply curve?
A. An increase in the available capital
B. An increase in the available labour
C. An increase in the available technology
D. An increase in price expectations
57. In a simple economy, the relationship between consumption, investment and national income is
as follow:
Nation income (Y) Consumption Investment

100 110 20
120 120 20
140 130 20
160 140 20
Marginal propensity to consumer MPC is
A. 0.7
B. 7
C. 5
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D. 0.5
56. The consumption function is C = 20 + 0.6Yd, then the saving function will be
A. S = 20 - 0,6Yd
B. S = - 20 + 0,4Yd
C. S = - 20 - 0,6Yd
D. S = 20 - 0,4Yd
57. Which of the following statements is accurate about the two - sector economy?
A. The two-sector economy consists of firms and the government
B. The two-sector economy consists of firms and foreign sector
C. The two-sector economy consists of household and government
D. The two-sector economy consists of firms and household
58. An economy that interacts with other economics is known as
A. An export economy
B. A friendly economy
C. An open economy
D. An import economy
59. Saving is equal to
A. Investment + Consumption Expenditure
B. Private Sai=ving + Public Saving
C. GDP + Consumption Exp. + Gvt Expenses
D. None of the above.
60. Stagflation occurs when the economy experiences
A. Rising prices and rising outputs
B. Rising prices and falling outputs
C. Falling prices and rising outputs
D. Falling prices and falling outputs
61. The fraction of a change in income that is consumed or spent is called
A. The marginal propensity of income
B. The marginal propensity to save
C. The marginal propensity to consumer
D. Average consumption
62. Suppose saving is $ 2000 when income is $10,000 and MPC equals 0.8. when income increases
to $15,000 saving is
A. $4,000
B. $3,000
C. $2,400
D. $5,000
63. Assume the economy has only households and firms. And the saving function is S = - 20 +
0.3Y, then consumption at an income level of 114 would be
A. 100
B. 90
C. 110
D. 50
64. Assume that a consumption function is C = 200 + 0.2Yd. The marginal propensity to save is
A. 0.8
B. 0.75
C. 0.25
D. 0.2

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65. Assume consumption is represented by the following: C = 400 + 0.75Yd. Also assume that
planned investment (I) equals 100
Given the information, calculate the equilibrium level of income
A. 2,500
B. 2,450
C. 2,250
D. 2,000
66. Assume consumption is represented by the following: C = 400 + 0.75Yd. Also assume that
planned investment (I) equals 100
Given the information, calculate the level of consumption that occurs at the equilibrium level of
income.
A. 2,420
B. 2,280
C. 2,000
D. 1,900
67. Assume consumption is represented by the following: C = 400 + 0.75Yd. Also assume that
planned investment (I) equals 100
Given the information, what is the size of the multiplier for this economy?
A. 2,2
B. 2,0
C. 0,9
D. 4
68. Assume consumption has the information as follow:
C = 160 + 0.6Yd
I = 150
G = 150
T = 100
Then the equilibrium output would be
A. 1000
B. 900
C. 1100
D. 700
69. Assume consumption has the information as follow:
C = 160 + 0.6Yd
I = 150
G = 150
T = 100
Then the disposable income would be
A. 1000
B. 900
C. 1100
D. 700
70. Assume consumption has the information as follow:
C = 160 + 0.6Yd
I = 150
G = 150
T = 100
Then the consumption at the equilibrium level would be
A. 1000
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B. 900
C. 1100
D. 700
71. The purpose of fiscal policy is to:
A. Alter the direction of the economy
B. Change people’s attitudes toward government
C. Offer insight into the way things work in the economy
72. All of the following are variable that can be manipulated to affect fiscal policy except
A. Personal income tax
B. Government expenditure on goods and services.
C. Government expenditure on unemployment benefits
D. The rate of interest
73. Contractionary fiscal policy can involve:
A. Increasing consumption and investment and taxes
B. Decreasing government spending and increasing taxes
C. Increasing government spending and increasing taxes
D. None of the above
74. What is not a task of a bank?
A. Make loans and take deposits
B. Provide financial advice
C. Print money
D. Invest in securities and other financial products
75. Which statement is true?
A. Banks never lend money
B. Banks always lend money to credit worthy clients, even if they don’t have it
C. Banks only lend money if the funds are available
D. None of the above
76. The initial effect of an increase in money supply is to
A. Increase the interest rate
B. Increase the price level
C. Decrease the price level
D. Decrease the interest rate
77. What does a bank do if there are no excess reserves?
A. Stop client’s transaction
B. Take back the loans from clients
C. Borrow reserves either from another bank, or directly from the central bank
D. Set a higher interest rate
78. The long-run effect of an increase in money supply
A. Increase the interest rate
B. Decrease the price level
C. Increase the price level
D. Decrease the interest rate
79. which assets are generally purchased by central banks?
A. Gold bullion or other precious metals
B. Foreign exchange reserves
C. Loans to government
D. Real estate.
80. What must a central bank provide to set interest rate?
A. The banks must be able to provide or withdraw liquidity in any amount
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B. The central bank is not allowed to fix the interest rate
C. It must show convincing reasons to the government on why it wants to fix the interest rate
D. The bank can set the interest rate in any case under any circumstance
81. The central bank sets the minimum reserve ratio for private banks at 25%, then the money
multiplier is
A. 2.5
B. 4
C. 1
D. 0.4
82. An economy has a monetary base of 500 billion; cash in circulation outside banks 60 billion;
bank deposit 300 billion, required reserves 42 billion, discretionary reserves of 18 billion
A. Determine the money multiplier and money supply level of the economy?

B. If the central bank buys a government bond 100 billion, how much will the money supply
change?

83. ….…………is a term referring to individuals in the workforce who are employable and active
seeking a job but do not have appropriate job.
A. Labor force
B. Unemployment
C. Adult population
D. Employment
84. If inflation is at 3% and the Nominal Interest rate is at 8%

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