This quiz works best with JavaScript enabled. Home > Macroeconomics > Cycles > Business Cycles – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. "Prices for consumer goods down 5% this year!" This headline affects which economic indicator the most? A) Unemployment. B) Consumer Price Index. C) Productivity. D) Gross Domestic Product (GDP). Show Answer Correct Answer: B) Consumer Price Index. 2. As real GDP decreases, what increases? A) Unemployment. B) Business. C) Employment. D) Interest. Show Answer Correct Answer: A) Unemployment. 3. How many stages are there in the business life cycle? A) 3. B) 5. C) 7. D) 4. Show Answer Correct Answer: B) 5. 4. What is the correct formula for calculating the unemployment rate in the US? A) #unemployed/labor force x100. B) #labor force/working age population x100. C) #unemployed/#employed x100. D) #labor force/60, 000 (BLS household survey. Show Answer Correct Answer: A) #unemployed/labor force x100. 5. A full time construction worker working 60+ hours a week at $ 18 per hour plus overtime pay. A) Employed. B) Unemployed. C) Not in the Labor Force. D) Not Applicable / Not Counted. Show Answer Correct Answer: A) Employed. 6. As real GDP increases, what else increases? A) Nominal GDP. B) Employment. C) Unemployment. D) CPI. Show Answer Correct Answer: B) Employment. 7. Advances in technology make the assembly-line worker's job obsolete. A) Frictional. B) Cyclical. C) Structural. D) Not counted. Show Answer Correct Answer: C) Structural. 8. ..... sector generates the lowest percentage of their revenues abroad. A) Financials. B) Telecom. C) Info Tech. D) Utilities. Show Answer Correct Answer: B) Telecom. 9. 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. 10. 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. 11. When individuals are searching for greener pastures is considered what type of unemployment? A) Frictional. B) Cyclical. C) Structural. D) Seasonal. Show Answer Correct Answer: A) Frictional. 12. This is considered the highest point in the business cycle where the economy is producing at maximum output A) Expansion. B) Peak. C) Recession. D) Trough. Show Answer Correct Answer: B) Peak. 13. 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) Cyclical. B) Season. C) Frictional. D) Structural. Show Answer Correct Answer: D) Structural. 14. 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. 15. How do we measure economic growth? A) Increases in the price level, as indicated by the GDP chain price index. B) Increases in fictional GDP. C) Increases in real GDP. D) Increases in the labor force. Show Answer Correct Answer: C) Increases in real GDP. 16. How is nominal GDP calculated? A) Use the current year's prices to calculate the value of the current year's output. B) Calculate the % change from one year to another. C) Calculate the amount of taxes citizens pay. D) Calculate the total amount of goods bought within the year. Show Answer Correct Answer: A) Use the current year's prices to calculate the value of the current year's output. 17. When individuals are unemployed due to a change in season, e.g. Santa Claus after christmas. A) Seasonal Unemployment. B) Frictional Unemployment. C) Structural Unemployment. D) Cyclical Unemployment. Show Answer Correct Answer: A) Seasonal Unemployment. 18. Which choice shows the stages of the business cycle in the correct order? A) Expansion, peak, trough, contraction. B) Peak, contraction, trough, expansion. C) Contraction, expansion, trough, peak. D) Trough, expansion, contraction, peak. Show Answer Correct Answer: B) Peak, contraction, trough, expansion. 19. The deficit A) Spending more than what is taken in. B) When your revenue is less then the expenditures. C) Contributes to the national debt. D) All of the above. Show Answer Correct Answer: D) All of the above. 20. 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. ← PreviousNext →Related QuizzesMacroeconomics QuizzesBusiness Cycles Quiz 1Business Cycles Quiz 2Business Cycles Quiz 3Business Cycles Quiz 4Business Cycles Quiz 5Business Cycles Quiz 6Business Cycles Quiz 7Business Cycles Quiz 8Business Cycles Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books