This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Business Cycles > Business Cycles – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which market segment shows how a customer views the world? A) Demographic. B) Behavioral. C) Geographical. D) Psychographic. Show Answer Correct Answer: D) Psychographic. 2. If GDP of a country is decreasing, this can indicate that overall spending on goods and services will decrease for businesses. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 3. Which of the following is NOT one of the considerations when selecting a business structure? A) Size of the business or organization. B) Worker skills and responsibilities. C) Business purpose. D) Customers' demographics. Show Answer Correct Answer: D) Customers' demographics. 4. A company decides that they need to produce their goods more efficiently. As a result, they decide to give their employees more tools and skills to increase the company's overall efficiency, and their profits. This is an example of: A) The Business Cycle. B) Economic Contraction. C) Capital Deepening. D) Technological Progress. Show Answer Correct Answer: C) Capital Deepening. 5. What are the four parts of the business cycle? A) Expansion-Peak-Sloth-Plummet. B) Expansion-Retraction-Infraction-Sublaction. C) Expansion-Peak-Recession-Trough. D) Infraction-Trough-Recession-Peak. Show Answer Correct Answer: C) Expansion-Peak-Recession-Trough. 6. Which is the formula to determine Gross Domestic Product? A) Consumption + Business costs + Government Expenditures + Net exports/imports. B) Consumption + Investment + Government Expenditures + Net exports/imports. C) National Income + Investment + Gov. Exp. + Net exports/imports. D) Consumtption + Investment + Gov. Exp. + Exports. Show Answer Correct Answer: B) Consumption + Investment + Government Expenditures + Net exports/imports. 7. Which is the following is a cause of a trough? A) A brand new product. B) A broken product. C) An expensive product. D) A severely outdated product. Show Answer Correct Answer: D) A severely outdated product. 8. Value of shares the company issues A) Productivity. B) Equity. C) Dividends. D) Opportunity Cost. Show Answer Correct Answer: B) Equity. 9. Which of the following types of departmentalization involves grouping of individuals into departments based on different tasks? A) Product departmentalization. B) Functional departmentalization. C) Process departmentalization. D) Target market departmentalization. Show Answer Correct Answer: B) Functional departmentalization. 10. Calculated in GDP? Farmer's purchase of a new tractor. A) Yes. B) No. Show Answer Correct Answer: A) Yes. 11. What is the 1st economic goal of each country? A) Limit Inflation. B) Limit Unemployment. C) Promote Economic Growth. D) Measure expenditures. Show Answer Correct Answer: C) Promote Economic Growth. 12. Simple structures are flexible and inexpensive, but are often only effective in small organizations. A) True. B) False. Show Answer Correct Answer: A) True. 13. Ellie owns a tumbling gym. She compiled a list of nearby competitors. Classify the following business as either direct or indirect competition:Cheerleading gym A) Direct competition. B) Indirect competition. Show Answer Correct Answer: A) Direct competition. 14. Each individual on food stamps in Delaware can receive up to $ 194 a month. Is this included in government spending? A) Yes-Government spending. B) Yes-Consumer Spending. C) No-Intermediate Goods. D) No-Purely financial Transaction. Show Answer Correct Answer: D) No-Purely financial Transaction. 15. Which of these is correct about population in the U.S. A) Our population is getting younger on average. B) The center of the nation's population has been moving eastward since colonial times. C) More and more people are moving to the countryside. D) Our population is growing at a fairly low rate. Show Answer Correct Answer: D) Our population is growing at a fairly low rate. 16. Which of the following is NOT a disadvantage of a simple structure? A) It only works well in small organizations. B) It allows too much power at the top level. C) It has few policies and rules to guide operations. D) It usually costs a lot of money. Show Answer Correct Answer: D) It usually costs a lot of money. 17. What is Real GDP mean? A) GDP expressed in today's dollars. B) GDP divided by everyone in the country. C) GDP adjusted for price changes from a base year. D) Net national product plus gross domestic income. Show Answer Correct Answer: C) GDP adjusted for price changes from a base year. 18. Which of the following is NOT a cause of inflation A) Higher resources costs. B) Aggregate demand increasing faster than productive capacity. C) Price expectations. D) Unemployment. Show Answer Correct Answer: D) Unemployment. 19. Building Permits, Consumer Expectations, and Average Manufacturing workweek is which indicator? A) None. B) Coincident Indicator. C) Lagging Indicator. D) Leading Indicator. Show Answer Correct Answer: D) Leading Indicator. 20. Why is real GDP more accurate than nominal GDP? A) It's adjusted for price changes. B) It's adjusted for depreciation. C) It includes unpaid and paid work. D) It includes unrecorded business. Show Answer Correct Answer: A) It's adjusted for price changes. ← PreviousNext →Related QuizzesMacroeconomics QuizzesEconomics QuizzesBusiness Cycles Quiz 1Business Cycles Quiz 3Business Cycles Quiz 4Business Cycles Quiz 5Business Cycles Quiz 6Business Cycles Quiz 7Business Cycles Quiz 8Business Cycles Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books