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

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Question #1
A new technological innovation would increase
A.   labor productivity.
B.   the labor force.
C.   population growth.
D.   labor hours worked.
Question #2
A recession is defined by economists as a time period when:
A.   consumer confidence is low
B.   unemployment is rising
C.   real GDP has declined for at least two quarters
D.   business profits are falling
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.   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.   All of these are costs.
B.   pollution.
C.   crowding.
D.   waste disposal.
Question #6
Human Capital refers to.
A.   tools and machinery
B.   education, training and health of a labor force
C.   plant and equipment
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.   same, same
B.   less, same
C.   less, less
D.   more, same
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.   increase wages paid to labor.
B.   reduce the population growth rate.
C.   increase the rate of technical progress.
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.   labor force per hour.
B.   output per hour of work.
C.   input per hour worked.
D.   total hours worked.
Question #11
Potential GDP is an estimate of the economy's ability to produce goods and services if the
A.   trade balance is zero.
B.   price level is stable.
C.   labor force is fully employed.
D.   federal budget is balanced.
Question #12
The phase of a business cycle during which real GDP reaches it's minimum level is the:
A.   recession
B.   trough
C.   recovery
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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