This quiz works best with JavaScript enabled. Home > Macroeconomics > Cycles > Business Cycles – Quiz 16 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 16 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the formula for calculating GDP if using the expenditure approach? A) Consumption + investment + government spending + net exports. B) Wages + interest + rent + profit. C) Add up all values added to the good. D) None of these. Show Answer Correct Answer: A) Consumption + investment + government spending + net exports. 2. Optimistic people will A) Help the economy. B) Hurt the economy. C) Not affect the economy. D) None of above. Show Answer Correct Answer: A) Help the economy. 3. All of the following are points on the business cycle EXCEPT A) Peaks. B) Troughs. C) Expansion. D) GDP. Show Answer Correct Answer: D) GDP. 4. Individuals are unemployed due to a lack in skills that modern industries need. A) Cyclical Unemployment. B) Frictional Unemployment. C) Structural Unemployment. D) Seasonal Unemployment. Show Answer Correct Answer: C) Structural Unemployment. 5. 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. 6. 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. 7. Which term is used to describe recurring upswings and downswings in an economy's real GDP over time? A) Recessions. B) Business cycle. C) Output yo-yos. D) Consumer Price Index. Show Answer Correct Answer: B) Business cycle. 8. Which phase would unemployment rates increase for 6 months or more A) Depression. B) Recession. C) Recovery. D) Peak. Show Answer Correct Answer: B) Recession. 9. With respect to efficiency wage models, the efficiency of workers depends A) Positively on the money wage they are paid. B) Positively on the real wage they are paid. C) Inversely on the age of the workers. D) Positively on the unemployment rate. Show Answer Correct Answer: B) Positively on the real wage they are paid. 10. GDP per capita is A) The population divided by total GDP. B) Investment as a percentage of GDP. C) Total GDP divided by total population. D) The same as GDP per worker. Show Answer Correct Answer: C) Total GDP divided by total population. 11. 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. 12. 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) 20. B) 40. C) 37. D) 140. Show Answer Correct Answer: C) 37. 13. When individuals lose jobs due to a decline in the economy during an economic recession. A) Structural Unemployment. B) Cyclical Unemployment. C) Frictional Unemployment. D) Seasonal Unemployment. Show Answer Correct Answer: B) Cyclical Unemployment. 14. 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. 15. If the US economy has 9% unemployment, what percent of this rate is cyclical? A) 9%. B) 3%-5%. C) 2%-4%. D) I don't know, so I will probably be unemployed. Show Answer Correct Answer: B) 3%-5%. 16. What's the lowest point of real GDP called? A) Expansion. B) Trough. C) Contraction. D) Peak. Show Answer Correct Answer: B) Trough. 17. The unemployment rate is A) The number of people who are unemployed. B) The percentage of the population that is unemployed. C) The percentage of the work force that is unemployed. D) The number of people in receipt of unemployment benefits. Show Answer Correct Answer: C) The percentage of the work force that is unemployed. 18. A general increase in prices across an economy. A) Gross Domestic Product. B) Consumer Price Index. C) Unemployment. D) Inflation. Show Answer Correct Answer: D) Inflation. 19. 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) Structural. B) Cyclical. C) Seasonal. D) Frictional. Show Answer Correct Answer: D) Frictional. 20. In order to accurately compare GDP between different years, what must be removed from GDP? A) Investment spending. B) The value added amount. C) Government spending. D) Changes in price caused by inflation. Show Answer Correct Answer: D) Changes in price caused by inflation. ← 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