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 productivity.
C.   labor hours worked.
D.   population growth.
Question #2
A recession is defined by economists as a time period when:
A.   unemployment is rising
B.   consumer confidence is low
C.   business profits are falling
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.   increasing real GDP.
B.   declining real GDP.
C.   rising labor productivity.
D.   declining unemployment.
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.   business profits were growing
D.   the rate of inflation was increasing
Question #5
Environmentalists worry that economic growth imposes costs on society. Among these costs are
A.   pollution.
B.   waste disposal.
C.   All of these are costs.
D.   crowding.
Question #6
Human Capital refers to.
A.   the ability of humans to make capital goods
B.   tools and machinery
C.   plant and equipment
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.   less, same
C.   more, same
D.   less, less
Question #8
If the government chose to increase purchases (G) on education
A.   Potential output should decrease
B.   Labor productivity should decline
C.   There will be no impact on output
D.   Potential output should increase
Question #9
One basic way to boost the nation's growth rate is to
A.   increase the rate of technical progress.
B.   increase wages paid to labor.
C.   accumulate less capital
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.   total hours worked.
B.   output per hour of work.
C.   labor force per hour.
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.   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.   recession
B.   trough
C.   depression
D.   recovery
Question #13
Which of the following indicators is a counter-cyclical indicator?
A.   interest rates
B.   inflation
C.   unemployment
D.   business profits

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