This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Business Cycles > Business Cycles – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. During which stage of the design thinking process is a problem statement formed? A) Ideate. B) Define. C) Prototype. D) Empathize. Show Answer Correct Answer: B) Define. 2. "Business investment in capital goods (machinery for production) rises." The headline above affects which economic indicator the most? A) Unemployment. B) Consumer Price Index. C) Inflation. D) Gross Domestic Product (GDP). Show Answer Correct Answer: D) Gross Domestic Product (GDP). 3. What is happening to Unemployment during the boom phase? A) Increasing. B) Decreasing. C) Highest. D) Lowest. Show Answer Correct Answer: D) Lowest. 4. A company divides employees into eastern, southern western and central regions. Which of the following describes such departmentalization? A) Product departmentalization. B) Geographic departmentalization. C) Process departmentalization. D) Target market departmentalization. Show Answer Correct Answer: B) Geographic departmentalization. 5. GDP A) Total value of goods produced and services provided in a country during one year. B) Quick wi-fi connection. C) Total value of goods produced and in a country during one year. D) Total value of services provided in a country during one year. Show Answer Correct Answer: A) Total value of goods produced and services provided in a country during one year. 6. The US unemployment rate increased to 3.6 percent in October 2019 from 3.5 percent in the previous month and in line with market expectations. Over the month, the number of unemployed persons increased by 86, 000. The labor force participation rate edged up to 63.3 percent from 63.2 percent in September. According to the passage, which macroeconomic goal is being described? A) Economic growth. B) Full employment. C) Stable prices. D) Inflation. E) Economic downturn. Show Answer Correct Answer: B) Full employment. 7. What type of unemployment is due to a business shutting down for a part of a year? A) Frictional. B) Structural. C) Seasonal. D) Cyclical. Show Answer Correct Answer: C) Seasonal. 8. What is the significance of the peak phase in the business cycle? A) It has no significance in the business cycle. B) It signifies the peak performance of the economy. C) It indicates the end of expansion and the beginning of a contraction. D) It indicates the start of expansion and the end of contraction. Show Answer Correct Answer: C) It indicates the end of expansion and the beginning of a contraction. 9. An organziation's products and services are the driving force in accomplishing its purpose. A) True. B) False. Show Answer Correct Answer: B) False. 10. What are the four main phases of the business cycle? A) Expansion, peak, contraction, and trough. B) Start, middle, end, finish. C) Spring, summer, fall, winter. D) Rise, climax, fall, bottom. Show Answer Correct Answer: A) Expansion, peak, contraction, and trough. 11. What is happening to Unemployment during the contractionary phase? A) Increasing. B) Decreasing. C) Highest. D) Lowest. Show Answer Correct Answer: A) Increasing. 12. Calculated in GDP? The services of a stay at home mom taking care of her own children. A) Yes. B) No. Show Answer Correct Answer: B) No. 13. Aggregate is another word for ..... A) Aggravate. B) Total. C) Supply. D) Demand. Show Answer Correct Answer: B) Total. 14. Which participant in the circular flow diagram is also known as the consumers? A) Businesses. B) Households. C) Government. D) The foreign sector . Show Answer Correct Answer: B) Households. 15. Which of the following is the principle in which an employee should have only one supervisor to whom he or she is responsible? A) Span of control. B) Authorization. C) Supervision. D) Chain of command. Show Answer Correct Answer: D) Chain of command. 16. Costco builds a new store in Noblesville, Indiana. Where would this show up in the GDP formula? (GDP=C+I+G+(X-M)) A) Consumption (Consumer). B) Investment (Business). C) Government Spending. D) Exports-Imports. Show Answer Correct Answer: B) Investment (Business). 17. Ellie owns a tumbling gym. She compiled a list of nearby competitors. Classify the following business as either direct or indirect competition:Martial arts center A) Direct competition. B) Indirect competition. Show Answer Correct Answer: B) Indirect competition. 18. Which market segment shares a customer's age, gender, and ethnicity? A) Demographic. B) Behavioral. C) Geographical. D) Psychographic. Show Answer Correct Answer: A) Demographic. 19. What is happening to Inflation during the peak phase? A) Increasing. B) Decreasing. C) Highest. D) Lowest. Show Answer Correct Answer: C) Highest. 20. Two consecutive quarterly declines in gross domestic product; also known as contraction A) Trough. B) Recession. C) Growth. D) Business Cycle. Show Answer Correct Answer: B) Recession. ← 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