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

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Question #1
A new technological innovation would increase
A.   labor hours worked.
B.   the labor force.
C.   population growth.
D.   labor productivity.
Question #2
A recession is defined by economists as a time period when:
A.   business profits are falling
B.   consumer confidence is low
C.   real GDP has declined for at least two quarters
D.   unemployment is rising
Question #3
According to economists, one of the signs of an unhealthy economy is a(n)
A.   declining unemployment.
B.   declining real GDP.
C.   increasing real GDP.
D.   rising labor productivity.
Question #4
During the Great Depression which of the following was true?
A.   business profits were growing
B.   consumer confidence was euphoric
C.   the rate of inflation was increasing
D.   the rate of investment was negative
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.   crowding.
D.   pollution.
Question #6
Human Capital refers to.
A.   the ability of humans to make capital goods
B.   plant and equipment
C.   education, training and health of a labor force
D.   tools and machinery
Question #7
If the capital stock increases, then the economy can produce ____ output with the ____ amount of labor.
A.   less, same
B.   less, less
C.   same, same
D.   more, same
Question #8
If the government chose to increase purchases (G) on education
A.   Potential output should decrease
B.   Potential output should increase
C.   Labor productivity should decline
D.   There will be no impact on output
Question #9
One basic way to boost the nation's growth rate is to
A.   increase the rate of technical progress.
B.   reduce the population growth rate.
C.   accumulate less capital
D.   increase wages paid to labor.
Question #10
One of the key factors that determine an economy's real GDP is labor productivity, which is a measure of
A.   labor force per hour.
B.   output per hour of work.
C.   input per hour worked.
D.   total hours worked.
Question #11
Potential GDP is an estimate of the economy's ability to produce goods and services if the
A.   price level is stable.
B.   labor force is fully employed.
C.   trade balance is zero.
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.   trough
B.   recession
C.   depression
D.   recovery
Question #13
Which of the following indicators is a counter-cyclical indicator?
A.   business profits
B.   inflation
C.   unemployment
D.   interest rates

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