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.   labor productivity.
D.   the labor force.
Question #2
A recession is defined by economists as a time period when:
A.   real GDP has declined for at least two quarters
B.   consumer confidence is low
C.   unemployment is rising
D.   business profits are falling
Question #3
According to economists, one of the signs of an unhealthy economy is a(n)
A.   declining unemployment.
B.   increasing real GDP.
C.   declining real GDP.
D.   rising labor productivity.
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.   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.   crowding.
B.   All of these are costs.
C.   pollution.
D.   waste disposal.
Question #6
Human Capital refers to.
A.   education, training and health of a labor force
B.   the ability of humans to make capital goods
C.   tools and machinery
D.   plant and equipment
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.   less, less
D.   same, same
Question #8
If the government chose to increase purchases (G) on education
A.   Labor productivity should decline
B.   There will be no impact on output
C.   Potential output should increase
D.   Potential output should decrease
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.   increase wages paid to labor.
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.   total hours worked.
B.   labor force per hour.
C.   input per hour worked.
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.   labor force is fully employed.
B.   federal budget is balanced.
C.   price level is stable.
D.   trade balance is zero.
Question #12
The phase of a business cycle during which real GDP reaches it's minimum level is the:
A.   depression
B.   trough
C.   recovery
D.   recession
Question #13
Which of the following indicators is a counter-cyclical indicator?
A.   unemployment
B.   inflation
C.   business profits
D.   interest rates

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