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.   population growth.
C.   the labor force.
D.   labor productivity.
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.   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.   consumer confidence was euphoric
B.   the rate of investment was negative
C.   the rate of inflation was increasing
D.   business profits were growing
Question #5
Environmentalists worry that economic growth imposes costs on society. Among these costs are
A.   waste disposal.
B.   pollution.
C.   crowding.
D.   All of these are costs.
Question #6
Human Capital refers to.
A.   education, training and health of a labor force
B.   plant and equipment
C.   tools and machinery
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.   less, same
D.   same, same
Question #8
If the government chose to increase purchases (G) on education
A.   Potential output should decrease
B.   There will be no impact on output
C.   Potential output should increase
D.   Labor productivity should decline
Question #9
One basic way to boost the nation's growth rate is to
A.   reduce the population growth rate.
B.   increase the rate of technical progress.
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.   total hours worked.
B.   input per hour worked.
C.   labor force per hour.
D.   output per hour of work.
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.   price level is stable.
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.   recovery
B.   recession
C.   trough
D.   depression
Question #13
Which of the following indicators is a counter-cyclical indicator?
A.   unemployment
B.   interest rates
C.   inflation
D.   business profits

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