Macroeconomics — Test Answers

Governments collect taxes to ensure that

there is sufficient money to fund private businesses.

a government program exists for every need that arises.

citizens contribute to meeting society's needs.

politicians get paid in a timely manner.

Economic growth takes place when a country

produces a steady number of automobiles.

measures its gross domestic product (GDP).

produces more goods and services.

has a high unemployment rate.

Bank deposits help the nation’s economy by

providing protection for consumers from theft.

giving banks the money to loan and invest.

providing protection for banks on investments.

giving consumers the ability to save money.

Which stage of the business cycle is an economy in when it reaches its low point?

Expansion

Trough

Peak

Contraction

Economic interactions involving which of these would most likely be studied in macroeconomics?

International Monetary Fund policy

a small company’s supply contract for a local town

a family’s finances

trade at a duty-free shop on the U.S.-Canadian border

Did you find these answers helpful?

More from this Course

Practice Test

Practice Test

Practice Exam