This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Business Cycles > Business Cycles – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A ..... organization structure combines the elements of functional and product-based departmentalization. A) Simple. B) Divisional. C) Matrix. D) Learning. Show Answer Correct Answer: C) Matrix. 2. A Chik-fil-A milkshake today costs $ 2.75. The Camden location sold 5, 000, 000 this year. In 1961, it cost $ 0.80 and they sold 2, 000, 000. How do I find the nominal GDP for Chik-fil-A milkshakes in 1961? A) 2.75 x 5, 000, 000. B) .80 x 2, 000, 000. C) .80 x 5, 000, 000. D) 2.75 x 2, 000, 000. Show Answer Correct Answer: B) .80 x 2, 000, 000. 3. What is one limitation of GDP? A) It does not include intermediate goods. B) It does not show how the economy is doing over time. C) It does not include non-durable goods. D) It does not measure health and happiness. Show Answer Correct Answer: D) It does not measure health and happiness. 4. The performance of which other goal(s) can be inferred from the business cycle? A) Full employment. B) Price stability. C) Both full employment & price stability. D) None of above. Show Answer Correct Answer: C) Both full employment & price stability. 5. If the dollar appreciates(increases in value) because of speculation or government policy, the U.S. net exports A) Increase and aggregate demand shifts right. B) Increase and aggregate demand shifts left. C) Decrease and aggregate demand shifts right. D) Decrease and aggregate demand shifts left. Show Answer Correct Answer: D) Decrease and aggregate demand shifts left. 6. Indianapolis purchases a new fire truck. Where would this show up in GDP formula? (GDP=C+I+G+(X-M)) A) Consumption (Consumer). B) Investment (Business). C) Government Spending. D) Exports-Imports. Show Answer Correct Answer: C) Government Spending. 7. Period in which business activity has reached a maximum A) Peak. B) Recession. C) Growth. D) Business Cycle. Show Answer Correct Answer: A) Peak. 8. Which of the following types of authority can create problems of overlapping authority? A) Line authority. B) Employer authority. C) Functional authority. D) Deparmtnet authority. Show Answer Correct Answer: C) Functional authority. 9. The period of the business cycle characterized by Businesses decreasing production, unemployment rising, consumer spending decreasing, and a fall in inflation is A) Expansion. B) Peak. C) Recession. D) Trough. Show Answer Correct Answer: C) Recession. 10. Which cause of inflation suggests that the increasing costs of inputs forces businesses to increase their prices? A) Quantity Theory. B) Cost-Push Theory. C) Demand-Pull Theory. D) Demand-Push Theory. Show Answer Correct Answer: B) Cost-Push Theory. 11. Calculated in GDP? An electrician's purchase of a used truck for work. A) Yes. B) No. Show Answer Correct Answer: B) No. 12. Calculated in GDP? A Social Security check from the government to a retired store manager. A) Yes. B) No. Show Answer Correct Answer: B) No. 13. All of the following can shift aggregate supply, except A) Supply shocks from trading partners. B) Increased business taxes. C) Changes in the price level. D) An innovation in technology. Show Answer Correct Answer: C) Changes in the price level. 14. The highest point in the business cycle, characterized by low unemployment and high inflation is ..... A) Expansion. B) Peak. C) Contraction. D) Trough. Show Answer Correct Answer: B) Peak. 15. An overall increase in imports will have what effect on GDP A) Increase GDP overall. B) Decrease GDP overall. C) Consistent GDP. D) No impact on GDP. Show Answer Correct Answer: B) Decrease GDP overall. 16. Tom runs a car repair shop with dependable employees. Recently he has seen an increase in customers needing work done. He knows that he needs to replace one of the lift machines but is struggling to finance it. There are other repair shops in the neighborhood. Identify the SWOT analysis element below:Repair shop competitors A) Strength. B) Opportunity. C) Threat. D) Weakness. Show Answer Correct Answer: C) Threat. 17. To measure the health of an economy, people look at the symptoms or indicators used to measure the health of an economy. The 3 main indicators include all of the following except; A) Gross Domestic Product. B) Imflation/ Consumer Price Index. C) Unemployment. D) Average Income Level. Show Answer Correct Answer: D) Average Income Level. 18. Nominal GDP ..... = Real GDP A) Inflation. B) Unemployment. C) Imports. D) Exports. Show Answer Correct Answer: A) Inflation. 19. Net Exports are ..... A) Imports divided by exports. B) Exports minus Imports. C) Imports minus Exports. D) Exports divided by imports. Show Answer Correct Answer: B) Exports minus Imports. 20. Inflation works to the advantage of ..... A) Creditors. B) Pensioners. C) Insurance policy holders. D) Debtors. Show Answer Correct Answer: D) Debtors. ← PreviousNext →Related QuizzesMacroeconomics QuizzesEconomics QuizzesBusiness Cycles Quiz 1Business Cycles Quiz 2Business 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