This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Business Cycles > Business Cycles – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which component of GDP? I pay my accountant $ 175 to file my tax paperwork. A) Consumption. B) Government spending. C) Investment (in physical capital). D) Net Exports. Show Answer Correct Answer: A) Consumption. 2. During which phase of the business cycle does the economy experience high unemployment and low consumer spending? A) Recession. B) Peak. C) Expansion. D) Boom. Show Answer Correct Answer: A) Recession. 3. In which stage is a Minimum Viable Product (MVP) created? A) Growth. B) Idea. C) Traction. D) Launch. E) Prototype. Show Answer Correct Answer: E) Prototype. 4. During which stage of the design thinking process will the design team create multiple inexpensive product versions? A) Ideate. B) Define. C) Prototype. D) Empathize. Show Answer Correct Answer: C) Prototype. 5. Which of the following occurs when decisions are made by the individuals who are the closest to the problem? A) Authorization. B) Centralization. C) Supervision. D) Decentralization. Show Answer Correct Answer: D) Decentralization. 6. Increase in the key measurements of aggregate economic activities such as employment, sales and income resulting in a rise in productivity; also known as expansion or recovery A) Peak. B) Recession. C) Growth. D) Business Cycle. Show Answer Correct Answer: C) Growth. 7. Sum or whole amount of something A) Trough. B) Aggregate. C) Growth. D) Business Cycle. Show Answer Correct Answer: B) Aggregate. 8. What type of unemployment occurs during a transition period from one job to another job? A) Frictional. B) Structural. C) Seasonal. D) Cyclical. Show Answer Correct Answer: A) Frictional. 9. What is the remuneration received by the factor of production entrepreneurship? A) Profit. B) Interest. C) Rent. D) Wages and salaries . Show Answer Correct Answer: A) Profit. 10. Discuss the impact of inflation on businesses during the expansion phase of the business cycle. A) Inflation has no impact on businesses during the expansion phase. B) Inflation leads to reduced costs and increased purchasing power for businesses. C) Inflation only affects consumers, not businesses. D) Inflation can lead to increased costs and reduced purchasing power for businesses. Show Answer Correct Answer: D) Inflation can lead to increased costs and reduced purchasing power for businesses. 11. The more money people invest in businesses, the more money businesses have to grow. Therefore, investment affects the business cycle. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 12. ..... is the grouping of individuals into departments. A) Centralization. B) Decentralization. C) Centralmentalization. D) Departmentalization. Show Answer Correct Answer: D) Departmentalization. 13. What is happening to GDP during the expansionary phase? A) Increasing. B) Decreasing. C) Highest. D) Lowest. Show Answer Correct Answer: A) Increasing. 14. The real flow in the circular flow diagram can be described as ..... A) The flow of money such as income, taxes and expenditure. B) The flow of goods and services only. C) The flow of goods and services as well as the factors of production. D) The flow of the factors of production only . Show Answer Correct Answer: C) The flow of goods and services as well as the factors of production. 15. Which of the following is NOT a recovery's characteristic? A) Consumers begin to increase spending. B) Rapidly rising unemployment. C) Business feel a little more confident and start to invest again. D) Consumers begin to increase spending. Show Answer Correct Answer: B) Rapidly rising unemployment. 16. What strategies can businesses adopt to survive during a recession? A) Increase spending on unnecessary luxuries. B) Lay off all employees and work alone. C) Implement cost-cutting measures, diversify products/services, focus on customer retention, and seek financial assistance if needed. D) Ignore customer needs and complaints. Show Answer Correct Answer: C) Implement cost-cutting measures, diversify products/services, focus on customer retention, and seek financial assistance if needed. 17. What type of unemployment occurs when there is a decline in business activity resulting in layoffs? A) Frictional. B) Structural. C) Seasonal. D) Cyclical. Show Answer Correct Answer: D) Cyclical. 18. GDP measures the worth/value of a country's production and spending using the ..... A) Expenditure Approach. B) Income Approach. C) Frying Pan. D) Capybara. Show Answer Correct Answer: A) Expenditure Approach. 19. Which of the following best describes what is occurring when an economy's actual output is above its full employment level of output? A) Economic growth. B) A recession. C) A trough. D) A positive output gap. E) A negative output gap. Show Answer Correct Answer: D) A positive output gap. 20. The total value of finished goods and services produced within the borders of a country over a certain period of time is known as ..... A) Gross National Income (GNI). B) Gross National Product (GNP). C) GDP Per Capita. D) Gross Domestic Product (GDP) . Show Answer Correct Answer: D) Gross Domestic Product (GDP) . ← PreviousNext →Related QuizzesMacroeconomics QuizzesEconomics QuizzesBusiness Cycles Quiz 1Business Cycles Quiz 2Business Cycles Quiz 3Business Cycles Quiz 4Business Cycles Quiz 6Business Cycles Quiz 7Business Cycles Quiz 8Business Cycles Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books