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

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Question #1
A new technological innovation would increase
A.   population growth.
B.   the labor force.
C.   labor hours worked.
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.   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.   rising labor productivity.
B.   declining real GDP.
C.   declining unemployment.
D.   increasing real GDP.
Question #4
During the Great Depression which of the following was true?
A.   business profits were growing
B.   the rate of inflation was increasing
C.   the rate of investment was negative
D.   consumer confidence was euphoric
Question #5
Environmentalists worry that economic growth imposes costs on society. Among these costs are
A.   waste disposal.
B.   All of these are costs.
C.   pollution.
D.   crowding.
Question #6
Human Capital refers to.
A.   plant and equipment
B.   the ability of humans to make capital goods
C.   tools and machinery
D.   education, training and health of a labor force
Question #7
If the capital stock increases, then the economy can produce ____ output with the ____ amount of labor.
A.   same, same
B.   more, same
C.   less, same
D.   less, less
Question #8
If the government chose to increase purchases (G) on education
A.   There will be no impact on output
B.   Potential output should decrease
C.   Labor productivity should decline
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.   reduce the population growth rate.
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.   total hours worked.
D.   input per hour worked.
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.   labor force is fully employed.
C.   trade balance is zero.
D.   price level is stable.
Question #12
The phase of a business cycle during which real GDP reaches it's minimum level is the:
A.   trough
B.   depression
C.   recession
D.   recovery
Question #13
Which of the following indicators is a counter-cyclical indicator?
A.   unemployment
B.   business profits
C.   inflation
D.   interest rates

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