Econ 102 - Principles of Macroeconomics » Spring 2023 » Business Cycle Quiz

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Question #1
A new technological innovation would increase
A.   labor productivity.
B.   population growth.
C.   labor hours worked.
D.   the labor force.
Question #2
A recession is defined by economists as a time period when:
A.   unemployment is rising
B.   real GDP has declined for at least two quarters
C.   business profits are falling
D.   consumer confidence is low
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 inflation was increasing
B.   the rate of investment was negative
C.   consumer confidence was euphoric
D.   business profits were growing
Question #5
Environmentalists worry that economic growth imposes costs on society. Among these costs are
A.   crowding.
B.   pollution.
C.   All of these are costs.
D.   waste disposal.
Question #6
Human Capital refers to.
A.   education, training and health of a labor force
B.   plant and equipment
C.   the ability of humans to make capital goods
D.   tools and machinery
Question #7
If the capital stock increases, then the economy can produce ____ output with the ____ amount of labor.
A.   more, same
B.   less, same
C.   same, same
D.   less, less
Question #8
If the government chose to increase purchases (G) on education
A.   Potential output should increase
B.   Labor productivity should decline
C.   Potential output should decrease
D.   There will be no impact on output
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.   accumulate less capital
D.   reduce the population growth rate.
Question #10
One of the key factors that determine an economy's real GDP is labor productivity, which is a measure of
A.   input per hour worked.
B.   output per hour of work.
C.   total hours 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.   trade balance is zero.
B.   price level is stable.
C.   labor force is fully employed.
D.   federal budget is balanced.
Question #12
The phase of a business cycle during which real GDP reaches it's minimum level is the:
A.   recovery
B.   depression
C.   recession
D.   trough
Question #13
Which of the following indicators is a counter-cyclical indicator?
A.   interest rates
B.   inflation
C.   business profits
D.   unemployment

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