Free Macroeconomics MCQs with Answers
1,499 Macroeconomics MCQs from Economics, each with the correct answer and a written explanation of why it is correct. Free and unlimited, with no account needed.
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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- A. achieved only through socialism
- B. target variables
- C. bound by soft budget
- D. recurrent expenditures
Explanation: These are measurable development objectives: a specified growth rate, poverty reduction, and a maximum balance-of-payments deficit.
Correct answer: target variables- A. instrument variable
- B. seasonal expenditure
- C. rolling plan
- D. perspective plan
Explanation: A rolling plan covers a medium-term period but is extended and revised each year, keeping the planning horizon continuous.
Correct answer: rolling plan- A. commanding heights
- B. entrepreneurial programs
- C. public physical policy
- D. development planning
Explanation: Development planning coordinates government policies and resource allocation to meet national objectives such as growth, employment, and…
Correct answer: development planning- A. dirigiste
- B. Keynesian
- C. Commanding heights
- D. soft budget
Explanation: Dirigisme is a development approach in which the state directs economic activity and intervenes substantially in prices and markets.
Correct answer: dirigiste- A. Russia, Pakistan Bangladesh and Nigeria
- B. China, India, Indonesia, and Brazil
- C. Russia, China, India, and South Africa
- D. China, Russia, Mexico, and Indonesia
Explanation: Around 2010, the five largest populations were China, India, the United States, Indonesia, and Brazil.
Correct answer: China, India, Indonesia, and Brazil- A. Association of South East Argo Nations
- B. Association of South East Asian Nations
- C. Alliance of South East Asian Neighbors
- D. Alliance of South Eastern African Nations
Explanation: ASEAN stands for the Association of Southeast Asian Nations, a regional organisation formed to promote cooperation among Southeast Asian…
Correct answer: Association of South East Asian Nations- A. Ghana and Nigeria
- B. Poland and Germany
- C. Cuba and North Korea
- D. China and Hong Kong
Explanation: Cuba and North Korea retained highly centralised communist systems closely associated with the Soviet development model.
Correct answer: Cuba and North Korea- A. Ghana and Mexico
- B. Canada and the United States
- C. Sierra Leone and Nigeria
- D. Taiwan and South Korea
Explanation: Taiwan and South Korea achieved exceptionally rapid sustained growth, often called the East Asian miracle, with real per-capita growth…
Correct answer: Taiwan and South Korea- A. a strong Catholic church intervention in the economic decisions
- B. an emphasis on trade restrictions
- C. the use of the medieval economy
- D. the rise of capitalism
Explanation: Modern Western growth was closely associated with the rise of capitalism, which strengthened private property, investment, markets, and…
Correct answer: the rise of capitalism- A. China
- B. United States
- C. Russia
- D. Europe
Explanation: China contains more than 70 percent of the population of the major fast-growing East Asian economies because of its very large population.
Correct answer: China- A. zaibatsu
- B. chaebol
- C. laissez faire
- D. bourgeoisie
Explanation: Chaebol is the Korean term for large, family-controlled corporate conglomerates such as Samsung and Hyundai.
Correct answer: chaebol572. Keiretsu refers to ?
- A. groups of affiliated companies loosely organized around a large bank
- B. horizontal manufacturing groups consisting of a core company and its partners
- C. State-assisted entrepreneurs
- D. financial cliques
Explanation: A keiretsu is a network of affiliated firms linked through cross-shareholding and commonly organized around a major bank.
Correct answer: groups of affiliated companies loosely organized around a large bank- A. Japan
- B. The four tigers
- C. Vietnam
- D. Thailand
Explanation: The World Bank’s eight high-performing Asian economies included Japan, Hong Kong, Singapore, South Korea, Taiwan, Indonesia, Malaysia and…
Correct answer: Vietnam- A. income per capita is the same regardless of poor or rich countries
- B. income per capita in poor countries grows faster than in rich countries
- C. income per capita in rich countries grows faster than in poor countries
- D. income per capita in poor countries grows conditional upon foreign aid
Explanation: Conditional convergence means that when countries have the same fertility, education and government-spending conditions, poorer countries…
Correct answer: income per capita in poor countries grows faster than in rich countries- A. the monarchy
- B. the central planners of the Soviet Union
- C. the capitalist and middle class
- D. the aristocrats of wealthy nations
Explanation: The bourgeoisie traditionally means the capitalist class that owns or controls productive assets, and in broader usage it includes the…
Correct answer: the capitalist and middle class- A. total market reliance for resource allocation
- B. economic restructuring by Gorbachev
- C. intensified central planning
- D. None of the above
Explanation: Perestroika means “restructuring” and was Mikhail Gorbachev’s programme for reforming the Soviet economic and political system.
Correct answer: economic restructuring by Gorbachev- A. diverting savings from agriculture to industry
- B. state assisted entrepreneurs
- C. state monopolized trading
- D. markets for allocating resources
Explanation: The Soviet model relied on central state direction, industrialization financed partly by agriculture, and state-controlled trade.
Correct answer: markets for allocating resources- A. Japan
- B. Four tigers
- C. Vietnam
- D. Thailand
Explanation: The eight high-performing Asian economies listed in the World Bank study included Japan, the four tigers, Indonesia, Malaysia and…
Correct answer: Vietnam- A. South Korea
- B. China
- C. Taiwan
- D. Singapore
Explanation: The classic East and Southeast Asian newly industrialized economies are South Korea, Taiwan, Singapore and Hong Kong.
Correct answer: China- A. declined
- B. increased
- C. remained the same
- D. cannot be determined
Explanation: The income gap widened because Western Europe industrialized and achieved sustained productivity growth much earlier and faster than most…
Correct answer: increased