This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Cycles > Business Cycles – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 11 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Individuals are unemployed due to a lack in skills that modern industries need. A) Structural Unemployment. B) Frictional Unemployment. C) Cyclical Unemployment. D) Seasonal Unemployment. Show Answer Correct Answer: A) Structural Unemployment. 2. The business cycle rises during a time of growth called- A) Rescessions. B) Expansions. C) Troughs. D) None of above. Show Answer Correct Answer: B) Expansions. 3. In the long run, the economy of the United States has A) Steadily grown over time. B) Steadily declined over time. C) Behaved in ways that cannot be explained by modern macroeconomists. D) Experienced drastic fluctuations, but it is back to its old levels now. Show Answer Correct Answer: A) Steadily grown over time. 4. Which term is used to describe recurring upswings and downswings in an economy's real GDP over time? A) Output yo-yos. B) Business cycle. C) Recessions. D) Consumer Price Index. Show Answer Correct Answer: B) Business cycle. 5. Which phase would unemployment rates increase for 6 months or more A) Peak. B) Depression. C) Recession. D) Recovery. Show Answer Correct Answer: C) Recession. 6. With respect to efficiency wage models, the efficiency of workers depends A) Positively on the money wage they are paid. B) Inversely on the age of the workers. C) Positively on the unemployment rate. D) Positively on the real wage they are paid. Show Answer Correct Answer: D) Positively on the real wage they are paid. 7. GDP per capita is A) The same as GDP per worker. B) Investment as a percentage of GDP. C) The population divided by total GDP. D) Total GDP divided by total population. Show Answer Correct Answer: D) Total GDP divided by total population. 8. How might the development of the internet increase productivity? A) Workers can access social networking sites. B) Businesses have greater access to resources. C) The products of the business will be well known. D) Managers have more free time to search for other jobs. Show Answer Correct Answer: B) Businesses have greater access to resources. 9. How many people are NOT in the Labor Force?Unemployed (Looking for job) = 20 Retired = 5 Prison = 2 School = 10 Employed = 180Unemployed (not looking for job) = 20 A) 40. B) 140. C) 37. D) 20. Show Answer Correct Answer: C) 37. 10. When individuals lose jobs due to a decline in the economy during an economic recession. A) Structural Unemployment. B) Frictional Unemployment. C) Cyclical Unemployment. D) Seasonal Unemployment. Show Answer Correct Answer: C) Cyclical Unemployment. 11. During the expansion phase, businesses will: A) Employ more workers and invest in machinery and equipment. B) Cut back on spending and reduce costs. C) Work shorter hours. D) Go on holiday because there's not much work. Show Answer Correct Answer: A) Employ more workers and invest in machinery and equipment. 12. If the US economy has 9% unemployment, what percent of this rate is cyclical? A) 9%. B) I don't know, so I will probably be unemployed. C) 3%-5%. D) 2%-4%. Show Answer Correct Answer: C) 3%-5%. 13. What's the lowest point of real GDP called? A) Expansion. B) Contraction. C) Peak. D) Trough. Show Answer Correct Answer: D) Trough. 14. The unemployment rate is A) The percentage of the work force that is unemployed. B) The number of people in receipt of unemployment benefits. C) The percentage of the population that is unemployed. D) The number of people who are unemployed. Show Answer Correct Answer: A) The percentage of the work force that is unemployed. 15. A general increase in prices across an economy. A) Unemployment. B) Consumer Price Index. C) Gross Domestic Product. D) Inflation. Show Answer Correct Answer: D) Inflation. 16. Patrick works in the oilfield and the low gas prices have caused his company to temporarily lay people off! He is experiencing what kind of unemployment? A) Frictional. B) Cyclical. C) Seasonal. D) Structural. Show Answer Correct Answer: A) Frictional. 17. In order to accurately compare GDP between different years, what must be removed from GDP? A) The value added amount. B) Government spending. C) Investment spending. D) Changes in price caused by inflation. Show Answer Correct Answer: D) Changes in price caused by inflation. 18. What type of unemployment do recent college graduates experience while looking for a job? A) Frictional. B) Structural/Technological. C) Seasonal. D) Cyclical. Show Answer Correct Answer: A) Frictional. 19. Billy Bob is 17 and workes every October as a zombie at the Netherworld Haunted House during that one month. The rest of the year he is A) Cyclically unemployed. B) Structurally unemployed. C) Seasonally unemployed. D) Frictionally unemployed. Show Answer Correct Answer: C) Seasonally unemployed. 20. Business cycle has four phases: A) Expansion, peak, contraction, trough. B) Contraction, peak, expansion, uprise. C) Trough, peak, decline, uprise. D) Peak, expansion, concept, decline. Show Answer Correct Answer: A) Expansion, peak, contraction, trough. 21. The business cycle directly measures which economic goal? A) Full employment. B) Growth. C) Price stability. D) None of above. Show Answer Correct Answer: B) Growth. 22. In this stage it is important that a business revisits it business plan, evaluates its goals and objectives and sets in place new financial and marketing plans. A) Start-up. B) Post-maturity. C) Growth. D) Maturity. Show Answer Correct Answer: C) Growth. 23. Inflation is defined as an increase in: A) Real wages of workers. B) Real GDP. C) The average price level. D) All consumer products. Show Answer Correct Answer: C) The average price level. 24. Which of the following is NOT an economic indicator used to measure the economy? A) Consumer Price Index. B) Gross Domestic Product. C) National Inflation Level. D) Unemployment Rate. Show Answer Correct Answer: C) National Inflation Level. 25. When the economy enters into a recession this type of unemployment emerges A) Structural. B) Cyclical. C) Seasonal. D) Frictional. Show Answer Correct Answer: B) Cyclical. 26. Which of these is NOT a characteristic of an unemployed person? A) He/she is laid off from a job in the succeeding months. B) He/she does not work. C) He/she is undergoing a career change. D) He/she has made specific efforts to find a job. Show Answer Correct Answer: B) He/she does not work. 27. When using the income approach to calculate GDP, all of the following are necessary components EXCEPT A) Wages. B) Interest paid to lenders. C) Profits. D) Consumer expenditures. Show Answer Correct Answer: D) Consumer expenditures. 28. John went to Sports Clips and purchased a haircut. Where would this show up in the GDP formula? A) Government Spending. B) Exports-Imports. C) Investment (Business). D) Consumption (Consumer). Show Answer Correct Answer: D) Consumption (Consumer). 29. Which of the following groups suffer from high inflation A) Taxpayers. B) Borrowers. C) Property Investors. D) Lenders. Show Answer Correct Answer: D) Lenders. 30. During the contraction phase of the business cycle, what happens to the number of workers needed by producers? A) Stays the same. B) Increases. C) Nothing. D) Decreases. Show Answer Correct Answer: D) Decreases. ← PreviousNext →Related QuizzesMacroeconomics QuizzesEconomics QuizzesBusiness Cycles Quiz 1Business Cycles Quiz 2Business Cycles Quiz 3Business Cycles Quiz 4Business Cycles Quiz 5Business Cycles Quiz 6Business Cycles Quiz 7Business Cycles Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books