Glendale Community College » Economics » Econ 102 - Principles of Macroeconomics » Fall 2022

Econ 102 - Principles of Macroeconomics » Fall 2022 » Business Cycle Quiz

Need help with your exam preparation?

Existing Quiz Clients Login here

Question #1

A new technological innovation would increase

A. the labor force.

B. labor productivity.

C. population growth.

D. labor hours worked.

Question #2

A recession is defined by economists as a time period when:

A. consumer confidence is low

B. business profits are falling

C. unemployment is rising

D. real GDP has declined for at least two quarters

Question #3

According to economists, one of the signs of an unhealthy economy is a(n)

A. rising labor productivity.

B. declining unemployment.

C. increasing real GDP.

D. declining real GDP.

Question #4

During the Great Depression which of the following was true?

A. the rate of investment was negative

B. consumer confidence was euphoric

C. business profits were growing

D. the rate of inflation was increasing

Question #5

Environmentalists worry that economic growth imposes costs on society. Among these costs are

A. All of these are costs.

B. waste disposal.

C. pollution.

D. crowding.

Question #6

Human Capital refers to.

A. tools and machinery

B. the ability of humans to make capital goods

C. education, training and health of a labor force

D. plant and equipment

Question #7

If the capital stock increases, then the economy can produce ____ output with the ____ amount of labor.

A. less, same

B. same, same

C. more, same

D. less, less

Question #8

If the government chose to increase purchases (G) on education

A. Potential output should increase

B. Potential output should decrease

C. There will be no impact on output

D. Labor productivity should decline

Question #9

One basic way to boost the nation's growth rate is to

A. increase wages paid to labor.

B. increase the rate of technical progress.

C. reduce the population growth rate.

D. accumulate less capital

Question #10

One of the key factors that determine an economy's real GDP is labor productivity, which is a measure of

A. output per hour of work.

B. total hours worked.

C. input per hour worked.

D. labor force per hour.

Question #11

Potential GDP is an estimate of the economy's ability to produce goods and services if the

A. federal budget is balanced.

B. trade balance is zero.

C. price level is stable.

D. labor force is fully employed.

Question #12

The phase of a business cycle during which real GDP reaches it's minimum level is the:

A. recession

B. recovery

C. depression

D. trough

Question #13

Which of the following statements is true?

A. The four phases of the business cycle, in order, are peak, recovery, trough and recession.

B. Full employment exists in an economy when the unemployment rate equals the sum of frictional and cyclical unemployment rates.

C. Generally during a prosperity period wages rise as unemployment falls.

D. When unemployment is rising, then real GDP is rising.

Question #14

Which of the following indicators is a leading indicator?

A. inflation

B. interest rates

C. unemployment

D. business profits