This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Cycles > Business Cycles – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 9 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. How many stages are there in the business life cycle? A) 4. B) 3. C) 5. D) 7. Show Answer Correct Answer: C) 5. 2. What is the correct formula for calculating the unemployment rate in the US? A) #unemployed/#employed x100. B) #unemployed/labor force x100. C) #labor force/working age population x100. D) #labor force/60, 000 (BLS household survey. Show Answer Correct Answer: B) #unemployed/labor force x100. 3. A full time construction worker working 60+ hours a week at $ 18 per hour plus overtime pay. A) Employed. B) Unemployed. C) Not Applicable / Not Counted. D) Not in the Labor Force. Show Answer Correct Answer: A) Employed. 4. As real GDP increases, what else increases? A) Employment. B) Nominal GDP. C) CPI. D) Unemployment. Show Answer Correct Answer: A) Employment. 5. Advances in technology make the assembly-line worker's job obsolete. A) Frictional. B) Structural. C) Cyclical. D) Not counted. Show Answer Correct Answer: B) Structural. 6. ..... sector generates the lowest percentage of their revenues abroad. A) Telecom. B) Financials. C) Info Tech. D) Utilities. Show Answer Correct Answer: A) Telecom. 7. A higher GDP generally correlates to a(n) ..... standard of living. A) Higher. B) Lower. C) Unrelated. D) None of above. Show Answer Correct Answer: A) Higher. 8. All of the following are excluded from GDP except A) Non-market goods and services. B) Used goods. C) Environmental quality. D) Final goods and services. Show Answer Correct Answer: D) Final goods and services. 9. When individuals are searching for greener pastures is considered what type of unemployment? A) Seasonal. B) Frictional. C) Structural. D) Cyclical. Show Answer Correct Answer: B) Frictional. 10. This is considered the highest point in the business cycle where the economy is producing at maximum output A) Trough. B) Recession. C) Expansion. D) Peak. Show Answer Correct Answer: D) Peak. 11. A taxi driver in Athens is laid off because the taxi company he works for is losing business to Uber and Lyft. What type of unemployment is he experiencing A) Season. B) Structural. C) Cyclical. D) Frictional. Show Answer Correct Answer: B) Structural. 12. A (An) ..... is a cause of a trough. A) Brand new product. B) Broken product. C) Expensive product. D) Severely outdated product. Show Answer Correct Answer: D) Severely outdated product. 13. How do we measure economic growth? A) Increases in the labor force. B) Increases in the price level, as indicated by the GDP chain price index. C) Increases in fictional GDP. D) Increases in real GDP. Show Answer Correct Answer: D) Increases in real GDP. 14. How is nominal GDP calculated? A) Calculate the amount of taxes citizens pay. B) Use the current year's prices to calculate the value of the current year's output. C) Calculate the total amount of goods bought within the year. D) Calculate the % change from one year to another. Show Answer Correct Answer: B) Use the current year's prices to calculate the value of the current year's output. 15. When individuals are unemployed due to a change in season, e.g. Santa Claus after christmas. A) Seasonal Unemployment. B) Frictional Unemployment. C) Cyclical Unemployment. D) Structural Unemployment. Show Answer Correct Answer: A) Seasonal Unemployment. 16. Which choice shows the stages of the business cycle in the correct order? A) Peak, contraction, trough, expansion. B) Trough, expansion, contraction, peak. C) Expansion, peak, trough, contraction. D) Contraction, expansion, trough, peak. Show Answer Correct Answer: A) Peak, contraction, trough, expansion. 17. In the new Keynesian models, A) Imperfect competition comes is the result of optimizing behavior by individuals. B) Perfect competition is assumed with respect to the product market. C) A natural monopoly is presumed for the product market. D) Both a and c. Show Answer Correct Answer: A) Imperfect competition comes is the result of optimizing behavior by individuals. 18. The Los Angeles Lakers are in the playoffs this year and are expected to sell more merchandise. Will this count towards GDP? A) Yes-Investment. B) No-intermediate goods. C) Yes-Consumer Spending. D) No-used items. Show Answer Correct Answer: C) Yes-Consumer Spending. 19. What type of Unemployment is represented here?Scenario:The economy is on the decline causing businesses to lay off employees A) Cyclical. B) Frictional. C) Seasonal. D) Structural. Show Answer Correct Answer: A) Cyclical. 20. The higher the GDP/ GDP per capita, ..... A) The better the school systems. B) The stronger the economy. C) The higher the voter turnout. D) The worse the economy is. Show Answer Correct Answer: B) The stronger the economy. 21. What causes cost push inflation A) An increase in demand for goods and services. B) An increase in supply. C) A rise in production costs passed on to consumers. D) A fall in the price of imports. Show Answer Correct Answer: C) A rise in production costs passed on to consumers. 22. The National Debt is A) The revenue the government brings in. B) Balanced at zero. C) The amount of money the government owes within a given year. D) The total amount of money the government owes. Show Answer Correct Answer: D) The total amount of money the government owes. 23. Wages are highest A) Trough. B) Contraction. C) Peak. D) Expansion. Show Answer Correct Answer: C) Peak. 24. Fill in the blank. GDP is the total value of ..... goods and services produced in the economy in a year A) Depreciated. B) Improved. C) Finished. D) Appreciated. Show Answer Correct Answer: C) Finished. 25. In which phase would firms be expanding and opening up new locations A) Peak. B) Recovery. C) Recession. D) Depression. Show Answer Correct Answer: A) Peak. 26. Which of the following is NOT an indicator of the business cycle? A. B. C. D. A) Birth rate. B) Labor costs and productivity. C) Labor force. D) Wages. Show Answer Correct Answer: A) Birth rate. 27. Recessions can end if A) Workers choose to accept lower wages. B) Government policy is enforced to help the economy recover. C) Both a & b. D) None of above. Show Answer Correct Answer: C) Both a & b. 28. Which of the following are responsible for making fiscal policy decision? A) The President and Congress. B) The Federal Reserve System. C) The National Council of Economic Advisors. D) The commerce Department. Show Answer Correct Answer: A) The President and Congress. 29. Which of the following is not a stage in the business life cycle? A) Seed. B) Growth. C) Expansion. D) Post-Maturity. Show Answer Correct Answer: C) Expansion. 30. Which of the following is not a macroeconomic goal? A) Low unemployment. B) Rise in the minimum wage. C) Price level stability. D) None of above. Show Answer Correct Answer: B) Rise in the minimum wage. ← 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