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

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Question #1
A new technological innovation would increase
A.   the labor force.
B.   labor hours worked.
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.   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.   consumer confidence was euphoric
B.   the rate of inflation was increasing
C.   the rate of investment was negative
D.   business profits were growing
Question #5
Environmentalists worry that economic growth imposes costs on society. Among these costs are
A.   crowding.
B.   waste disposal.
C.   All of these are costs.
D.   pollution.
Question #6
Human Capital refers to.
A.   tools and machinery
B.   plant and equipment
C.   education, training and health of a labor force
D.   the ability of humans to make capital goods
Question #7
If the capital stock increases, then the economy can produce ____ output with the ____ amount of labor.
A.   less, less
B.   more, same
C.   same, same
D.   less, same
Question #8
If the government chose to increase purchases (G) on education
A.   There will be no impact on output
B.   Labor productivity should decline
C.   Potential output should decrease
D.   Potential output should increase
Question #9
One basic way to boost the nation's growth rate is to
A.   accumulate less capital
B.   increase the rate of technical progress.
C.   increase wages paid to labor.
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.   labor force per hour.
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.   federal budget is balanced.
C.   trade balance is zero.
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.   depression
C.   trough
D.   recovery
Question #13
Which of the following indicators is a counter-cyclical indicator?
A.   inflation
B.   interest rates
C.   business profits
D.   unemployment

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