Business Cycles Quiz 10 (20 MCQs)

Quiz Instructions

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1. This type of inflation occurs when the demand for products is greater that the supply of products.

Correct Answer: B) Demand pull inflation.

2. The lowest point of output in a recession, before a recovery begins is called

Correct Answer: C) Slump.

3. What is the study of the economy as a whole?

Correct Answer: B) Macroeconomics.

4. Mark always changes his own oil. Is this effort counted in GDP?

Correct Answer: B) No-Non-market Activity.

5. What is the study of the behaviour of individuals, households, and companies and is the study of how markets between buyers and sellers work?

Correct Answer: A) Microeconomics.

6. Economic recovery begins-

Correct Answer: B) At the end of a recession (trough).

7. What type of Unemployment is represented here?Scenario:Businesses purchase more technology for the sole purpose of laying off employees

Correct Answer: C) Structural.

8. What is happening to the economy in a period of economic contraction?

Correct Answer: C) GDP is falling and unemployment is rising.

9. The Unemployment Rate is defined as

Correct Answer: A) Percentage of unemployed people who are both willing & able to work.

10. At what point in the business cycle is GDP the highest?

Correct Answer: A) Peak.

11. A shoemaker increases its bulk purchases of leather to keep up with demand. Is this included in GDP?

Correct Answer: C) No-Intermediate Goods.

12. The percentage of a nations labor force that is unemployed.

Correct Answer: C) Unemployment.

13. When calculating GDP, which of the following is subtracted from the total?

Correct Answer: C) Imports.

14. Someone who works part-time but wants a full-time job is considered

Correct Answer: C) Underemployed.

15. Innovations in technology (like the rise of computers in the 1980s and 1990) can help shift us to which segment of the business cycle?

Correct Answer: D) Expansion.

16. Which term describes the phases of expansion and contraction in an economy over time?

Correct Answer: D) Business cycles.

17. An airline buying a plane belong in which part of the GDP formula?GDP = C+I+G+(X-M)

Correct Answer: B) Investment Expenditures.

18. The business life-cycle is a ..... of the series of stages that can be applied to the ..... of activity that a business conducts.

Correct Answer: B) Representation, duration.

19. When contraction (recession) begins in a business cycle-the economy will experience

Correct Answer: C) Both a & b.

20. When contraction (recession) begins in a business cycle-th economy has been declining for

Correct Answer: C) Two consecutive quarters.