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. Russia
- B. Saudi Arabia
- C. Iraq
- D. Venezuela
Explanation: Saudi Arabia has roughly one-quarter of proven global oil reserves, very low production costs, and major influence over OPEC output and…
Correct answer: Saudi Arabia- A. also known as index of Sustainable Economic Welfare per capita
- B. GDP plus resource depletion and environmental cost
- C. resource depletion and environmental cost divided by GDP per capita
- D. increasing from 1976 to 2000
Explanation: The Genuine Progress Indicator developed from the Index of Sustainable Economic Welfare and adjusts consumption for inequality…
Correct answer: also known as index of Sustainable Economic Welfare per capita- A. Trade deficit
- B. Blind river disease
- C. Dutch disease
- D. Economic turmoil
Explanation: Dutch disease occurs when a resource-export boom appreciates the domestic currency, making manufactured exports less competitive and…
Correct answer: Dutch disease- A. the tragedy of commons
- B. sustainable development
- C. net primary productivity (NPP)
- D. the impossibility theorem
Explanation: Sustainable development combines present economic progress with protection of the ability of future generations to meet their needs.
Correct answer: sustainable development- A. The total number of children born in a country in given year a divided by labor force
- B. The number of children born to the average woman during her reproductive years.
- C. The number of births in a country divided by total population in a given year.
- D. The number of woman age 15-45 in a country divided by total population
Explanation: TFR estimates the average number of children a woman would have over her reproductive lifetime under current age-specific fertility rates.
Correct answer: The number of children born to the average woman during her reproductive years.- A. population self-sufficiency and constant economic growth
- B. low fertility and mortality
- C. a laissez-faire population policy
- D. a constant returns to scale production function
Explanation: Julian Simon rejected coercive population controls and argued that population growth can stimulate innovation and resource creation…
Correct answer: a laissez-faire population policy- A. The World Bank
- B. Thomas Robert Malthus
- C. Julian Simon
- D. Abraham Lincoin
Explanation: Thomas Robert Malthus published An Essay on the Principle of Population, first appearing in 1798.
Correct answer: Thomas Robert Malthus- A. increasing at an increasing rate
- B. decreasing
- C. zero
- D. 100%
Explanation: A stationary population has zero net growth, meaning births plus immigration equal deaths plus emigration.
Correct answer: zero- A. labor force participation rate
- B. per capita population ratio
- C. dependency ratio
- D. None of these
Explanation: The dependency ratio compares people usually outside the working-age group, conventionally under 15 and 65 or older, with the working-age…
Correct answer: dependency ratio- A. a decline in fertility
- B. The demographic transition from stage 3 to stage 2
- C. increases in the ratio of labor to capital
- D. an increase in the dependency ratio
Explanation: Urbanization, education, modernization and access to family planning generally reduce the desired number of births and therefore lower…
Correct answer: a decline in fertility- A. 40%
- B. 10%
- C. 80%
- D. 0.10%
Explanation: China and India together had roughly 2.4 billion people around 2000, compared with a world population of about 6.1 billion, or close to…
Correct answer: 40%- A. increased proportionally to economic growth
- B. increased geometrically, outstripping food supply which grew arithmetically
- C. increased stagnantly with food supply and economic development
- D. increased disproportionately surpassing agricultural production
Explanation: Malthus argued that population tends to grow geometrically, while food production can expand only arithmetically.
Correct answer: increased geometrically, outstripping food supply which grew arithmetically- A. 80%
- B. 50%
- C. 25%
- D. 35%
Explanation: Roughly four-fifths of the world's population lives in less-developed countries.
Correct answer: 80%994. Which of the following is not a possible cost of high fertility rates and rapid population growth ?
- A. increasing returns to natural resources with a direct impact on average food consumption
- B. increased urbanization and congestion
- C. a higher labor force growth rate and higher unemployment
- D. a working population that must support a large number of dependents
Explanation: High fertility can create congestion, rapid labour-force growth, unemployment, and a heavy dependent burden.
Correct answer: increasing returns to natural resources with a direct impact on average food consumption- A. 10%
- B. 0.002%
- C. 2%
- D. 0.5%
Explanation: For most of human history, high mortality kept population growth almost stagnant, at an extremely small annual rate of about 0.002%.
Correct answer: 0.002%- A. demographic transition
- B. population maturity
- C. demobilizing population
- D. birth-death transformation
Explanation: Demographic transition describes the movement from high birth and death rates to low birth and death rates, usually with a temporary…
Correct answer: demographic transition- A. the percentage increase in the consumption growth of the poor divided by percentage increase in the consumption growth of the nonpoor
- B. the percentage increase in the poor times percentage increase in the nonpoor
- C. the percentage increase in the poverty of the poor divided by percentage increase in the poverty of the nonpoor
- D. the percentage increase in the poor people in the Urban divided by percentage increase in the nonpoor in the urban
Explanation: The elasticity of pro-poor growth compares the percentage change in the poor's consumption growth with the percentage change in the…
Correct answer: the percentage increase in the consumption growth of the poor divided by percentage increase in the consumption growth of the nonpoor- A. 50
- B. 100
- C. 1000
- D. 5
Explanation: The Human Development Report 2003 noted that about 50 countries had lower income or development outcomes in 2003 than in 1990.
Correct answer: 50- A. quientiles
- B. percentiles
- C. simulation
- D. relative ratio measures
Explanation: Sala-i-Martin estimated the global income distribution by constructing and simulating distributions from available national income data…
Correct answer: simulation- A. 0
- B. 2
- C. 6
- D. 0.5
Explanation: The cited UNDP estimate used a rule of thumb that a 1 percent rise in per-capita consumption, with inequality unchanged, reduces the…
Correct answer: 2