Challenging Macro and Micro Concepts Assessment
A rigorous set of questions probing deep economic principles and real‑world financial mechanisms.
Quiz Questions
Answer all questions below and test your knowledge.
- 1
Which equation correctly represents the relationship between the marginal propensity to consume and the multiplier in a closed economy without taxes?
- 2
In the Dornbusch overshooting model, what primarily drives the short‑run exchange‑rate spike after a monetary tightening?
- 3
Which of the following best captures the definition of Pareto efficiency in a competitive market?
- 4
Under a Ramsey optimal taxation framework, which tax instrument is typically set to zero in the steady state to avoid distortionary effects?
- 5
The Gini coefficient of 0.4 indicates what about income distribution?
- 6
Which condition must hold for a game to have a unique Nash equilibrium in pure strategies when payoffs are strictly concave?
- 7
In the Solow growth model without technological progress, what happens to output per worker when the savings rate increases?
- 8
Which policy tool is most effective for combating a deflationary spiral in an open economy with high capital mobility?
- 9
The term structure of interest rates is upward sloping because of which fundamental expectation?
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