This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Cycles > Business Cycles – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the study of the economy as a whole? A) Macroeconomics. B) Finance. C) Microeconomics. D) Econometrics. Show Answer Correct Answer: A) Macroeconomics. 2. Mark always changes his own oil. Is this effort counted in GDP? A) No-Unreported Income. B) No-Non-market Activity. C) No-Purely financial transaction. D) No-Black Market. Show Answer Correct Answer: B) No-Non-market Activity. 3. What is the study of the behaviour of individuals, households, and companies and is the study of how markets between buyers and sellers work? A) Microeconomics. B) Macroeconomics. C) Econometrics. D) Finance. Show Answer Correct Answer: A) Microeconomics. 4. Economic recovery begins- A) Above the trend line. B) At the end of a recession (trough). C) At the "boom" period. D) None of above. Show Answer Correct Answer: B) At the end of a recession (trough). 5. What type of Unemployment is represented here?Scenario:Businesses purchase more technology for the sole purpose of laying off employees A) Frictional. B) Structural. C) Seasonal. D) Cyclical. Show Answer Correct Answer: B) Structural. 6. What is happening to the economy in a period of economic contraction? A) GDP is rising and unemployment is falling. B) GDP is rising and unemployment is rising. C) GDP is falling and unemployment is rising. D) GDP is falling and unemployment is falling. Show Answer Correct Answer: C) GDP is falling and unemployment is rising. 7. The Unemployment Rate is defined as A) Percentage of unemployed people who are both willing & able to work. B) Percentage of unemployed people who are willing but not able to work. C) Percentage of unemployed people who are able but not willing to work. D) None of above. Show Answer Correct Answer: A) Percentage of unemployed people who are both willing & able to work. 8. At what point in the business cycle is GDP the highest? A) Peak. B) Expansion. C) Recovery. D) Trough. Show Answer Correct Answer: A) Peak. 9. A shoemaker increases its bulk purchases of leather to keep up with demand. Is this included in GDP? A) Yes-Government Spending. B) No-Intermediate Goods. C) No-used item. D) Yes-Investment. Show Answer Correct Answer: B) No-Intermediate Goods. 10. The percentage of a nations labor force that is unemployed. A) Gross Domestic Product. B) Inflation. C) Consumer Price Index. D) Unemployment. Show Answer Correct Answer: D) Unemployment. 11. When calculating GDP, which of the following is subtracted from the total? A) Business investment spending. B) Consumer spending. C) Government spending. D) Imports. Show Answer Correct Answer: D) Imports. 12. Someone who works part-time but wants a full-time job is considered A) Underemployed. B) A discouraged worker. C) Overemployed. D) Unhappy. Show Answer Correct Answer: A) Underemployed. 13. Innovations in technology (like the rise of computers in the 1980s and 1990) can help shift us to which segment of the business cycle? A) Trough. B) Expansion. C) Contraction. D) Peak. Show Answer Correct Answer: B) Expansion. 14. Which term describes the phases of expansion and contraction in an economy over time? A) Business cycles. B) Total product oscillations. C) Prosperity. D) Recessions. Show Answer Correct Answer: A) Business cycles. 15. An airline buying a plane belong in which part of the GDP formula?GDP = C+I+G+(X-M) A) Investment Expenditures. B) Government Expenditures. C) Consumption Expenditures. D) Net Imports. Show Answer Correct Answer: A) Investment Expenditures. 16. The business life-cycle is a ..... of the series of stages that can be applied to the ..... of activity that a business conducts. A) Overview, types. B) Representation, duration. C) Overview, duration. D) Representation, types. Show Answer Correct Answer: B) Representation, duration. 17. When contraction (recession) begins in a business cycle-the economy will experience A) Higher unemployment. B) Lower inflation (deflation). C) Both a & b. D) None of above. Show Answer Correct Answer: C) Both a & b. 18. When contraction (recession) begins in a business cycle-th economy has been declining for A) 2 years. B) Higher unemployment. C) Lower inflation (deflation). D) Two consecutive quarters. Show Answer Correct Answer: D) Two consecutive quarters. 19. Which of the following lists each part of the business cycle? A) Peak, Downhill, Pit, Expansion. B) Peak, Pit, Recession, Explosion. C) Peak, Recession, Trough, Expansion. D) Peak, Recession, Pit, Explosion. Show Answer Correct Answer: C) Peak, Recession, Trough, Expansion. 20. They spend more than they earn, reducing their accumulated savings or going deeper into debt. A) Middle class. B) Poor people. C) Rich people. D) None of the above. Show Answer Correct Answer: B) Poor people. 21. Dover Downs will sell millions of dollars of NASCAR merchandise on race weekend. Will this be included in GDP? A) No-intermediate goods. B) Yes-Consumer Spending. C) No-used items. D) Yes-Investment. Show Answer Correct Answer: B) Yes-Consumer Spending. 22. Peggy, a recent college graduate, decides to look for a job instead of going to graduate school. If she is unable to find a job that suits her interest right away, what type of unemployment is she MOST likely experiencing? A) Structural. B) Frictional. C) Cyclical. D) Seasonal. Show Answer Correct Answer: B) Frictional. 23. As the economy nears the end of an expansion, interest rates usually ..... and wages rise more ..... than prices. A) Rise; rapidly. B) Rise; slowly. C) Fall; rapidly. D) Fall; slowly. Show Answer Correct Answer: A) Rise; rapidly. 24. Which year is the base year?1997 CPI = 951998 CPI = 971999 CPI = 1002000 CPI = 104 A) 2000. B) 1997. C) 1999. D) 1998. Show Answer Correct Answer: C) 1999. 25. To obtain an accurate picture of how the economy is doing, it is important to use A) Nominate GDP. B) Real-gdp. C) Gdp plus observations. D) All of the above. Show Answer Correct Answer: B) Real-gdp. 26. Which of the following is not considered a cost of inflation? A) Menu costs. B) Unit of account costs. C) Shoe-leather costs. D) Output costs. Show Answer Correct Answer: D) Output costs. 27. The business cycle rises above the trendline during- A) Rescessions. B) Expansions. C) Troughs. D) None of above. Show Answer Correct Answer: B) Expansions. 28. One of the problems with the unemployment rate is that it A) Does not reflect workers who have given up searching for a job. B) Is not measured accurately. C) Counts underemployed workers as unemployed workers. D) Does not count any workers above the age of 55. Show Answer Correct Answer: A) Does not reflect workers who have given up searching for a job. 29. Nominal GDP ..... = Real GDP A) Exports. B) Imports. C) Inflation. D) Unemployment. Show Answer Correct Answer: C) Inflation. 30. What term is used to describe the percent of the labor force that does not have a job but is currently looking for one? A) Unemployment rate. B) Workforce. C) Full employment. D) Leading economic indicator. Show Answer Correct Answer: A) Unemployment rate. ← 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 8Business Cycles Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books