This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Business Cycles > Business Cycles – Quiz 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 10 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Employment, Sales Volume, Personal income is which indicator? A) None. B) Coincident Indicator. C) Lagging Indicator. D) Leading Indicator. Show Answer Correct Answer: B) Coincident Indicator. 2. How do High-interest rates change people borrowing money habits? A) They Borrow money to buy things that are way out of their budget. B) People will buy fewer houses, cars, and big-ticket items like TVs. C) Use their Credit Cards more often. D) Will take out more loans. Show Answer Correct Answer: B) People will buy fewer houses, cars, and big-ticket items like TVs. 3. All of the following add to a nation's GDP EXCEPT A) Items purchased at a grocery store. B) Items imported from another Nation. C) Services rendered for payment. D) Government payouts for goods and services. Show Answer Correct Answer: B) Items imported from another Nation. 4. What is the correct equation for GDP below? A) GDP = C + M + I + G. B) GDP = C + I + G + (X-M). C) GDP = L + I + O + N. D) GDP = Nx + Mx + C + M. Show Answer Correct Answer: B) GDP = C + I + G + (X-M). 5. Unemployment occurs when A) Someone wants a job but can't find work. B) Someone is able and willing to work but can't find a job. C) Someone is able to work but does not have employment. D) Work provided is not sufficient to meet the needs of workers. Show Answer Correct Answer: B) Someone is able and willing to work but can't find a job. 6. Which component of GDP? A new smoker bought by someone to use at their house so they go out to eat less. A) Consumption. B) Government spending. C) Investment (in physical capital). D) Net Exports. Show Answer Correct Answer: A) Consumption. 7. "Real" GDP more accurately measures changes in production than Nominal GDP because it accounts for ..... A) Changes in price since the base year. B) Phases of the business cycle. C) Increases in unemployment. D) Decreases in exports. Show Answer Correct Answer: A) Changes in price since the base year. 8. Which of the following is NOT a component used to calculate Gross Domestic Product? A) Consumption. B) Government spending. C) Investment (in physical capital). D) Stock purchases. Show Answer Correct Answer: D) Stock purchases. 9. Which of the following is an example of an operative employee? A) Regional manager. B) Head coach. C) Chairman of the board. D) Assembly line worker. Show Answer Correct Answer: D) Assembly line worker. 10. An internet article about fashion trends seen in Europe was used to select inventory for a small boutique. What type of data was used in this scenario? A) Secondary. B) Ancillary. C) Primary. D) Binary. Show Answer Correct Answer: A) Secondary. 11. If government regulations are causing employers to cut costs, and you are fired as a result ..... that is considered A) A law suit. B) Frictional unemployment. C) Cyclical unemployment. D) Institutional Unemployment. Show Answer Correct Answer: D) Institutional Unemployment. 12. How does a recession impact businesses? A) Causing businesses to expand and grow. B) Reducing consumer spending and decreasing sales and profits. C) Having no impact on consumer spending and sales. D) Increasing consumer spending and boosting sales and profits. Show Answer Correct Answer: B) Reducing consumer spending and decreasing sales and profits. 13. Gross Domestic Product (GDP) ONLY refers to the total of FINAL goods and services produced in a country in one year. A) True. B) False. Show Answer Correct Answer: A) True. 14. The U.S. has the largest GDP in the world, except for China. A) True. B) False. Show Answer Correct Answer: B) False. 15. What happens to the unemployment rate during the contractionary phase? A) Increasing. B) Decreasing. C) Highest. D) Lowest. Show Answer Correct Answer: A) Increasing. 16. Is best for international businesses, have limited liability, and are double taxed. A) General or Limited Partnership. B) C Corporation. C) S Corporation. D) Sole Proprietorship or Partnership. E) Limited Liability Corporation. Show Answer Correct Answer: B) C Corporation. 17. When an economy is in the contraction (recession) phase of the business cycle, the government will likely A) Increase government spending to stimulate economic growth. B) Increase investment in training programs to assist unemployed people to find work. C) Both a & b. D) None of above. Show Answer Correct Answer: C) Both a & b. 18. The Unemployment Rate is defined as A) Percentage of unemployed people who are both willing & able to work. B) Percentage of unemployed people who are willing but not able to work. C) Percentage of unemployed people who are able but not willing to work. D) None of above. Show Answer Correct Answer: A) Percentage of unemployed people who are both willing & able to work. 19. Is this counted in the GDP of the US?Willy's Mexican Grill purchases new fryers for their chips. A) Yes. B) No. Show Answer Correct Answer: A) Yes. 20. This type of inflation occurs when an increase in the in production costs are passed on to the consumer. A) Supply Inflation. B) Cost Push Inflation. C) Imported Inflation. D) Demand Pull Inflation. Show Answer Correct Answer: B) Cost Push Inflation. ← PreviousNext →Related QuizzesMacroeconomics QuizzesEconomics QuizzesBusiness Cycles Quiz 1Business Cycles Quiz 2Business Cycles Quiz 3Business Cycles Quiz 4Business Cycles Quiz 5Business Cycles Quiz 6Business Cycles Quiz 7Business Cycles Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books