This quiz works best with JavaScript enabled. Home > Economics > Macroeconomics > Business Cycles > Business Cycles – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 8 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. During the boom phase, a business may find it difficult to recruit employees and businesses may react by increasing wages or offering additional benefits. A) TRUE. B) FALSE. Show Answer Correct Answer: A) TRUE. 2. Which of the following can lead to a "bust" in the business cycle? A) High inflation. B) Scarcity of resources. C) Both a & b. D) None of above. Show Answer Correct Answer: C) Both a & b. 3. When did the longest expansion take place for the U.S. Economy A) From the 1930s to 1939. B) From 2019to 2022. C) From 1969 to the 1990s. D) From 1991 to 2001. Show Answer Correct Answer: D) From 1991 to 2001. 4. Business Life Cycle StagesStage 1-When a business begins A) Existence. B) Survival. C) Success Stage. D) Take-Off Stage. E) Resourse Maturity Stage. Show Answer Correct Answer: A) Existence. 5. In which phase of the business cycle does the economy reach its peak? A) Expansion phase. B) Trough phase. C) Recession phase. D) Contraction phase. Show Answer Correct Answer: A) Expansion phase. 6. Which of the following is NOT one of the four basic organziational levels? A) Supervisors. B) MIddle managers. C) Top management. D) Lower managers. Show Answer Correct Answer: D) Lower managers. 7. Which of the following types of departmentalization works well for companies with multiple product line? A) Product departmentalization. B) Marketing departmentalization. C) Functional departmentalization. D) Homogenous departmentalization. Show Answer Correct Answer: A) Product departmentalization. 8. Which of the following describes the growth part of the business cycle? A) Accounts for the time when business activity has reached a maximum. B) Commonly defined as two consecutive quarterly declines n Gross Domestic Product. C) Occurs when persistent increases int he key measurements of aggregate economic activities are present. D) Is the lowest levels during a recession. Show Answer Correct Answer: C) Occurs when persistent increases int he key measurements of aggregate economic activities are present. 9. The economy can be measured in two different ways. This includes adding up all of the ..... or ..... A) Spending; government receipts. B) Government receipts; federal debt. C) Federal debt; personal loans. D) Income produced; spending. Show Answer Correct Answer: D) Income produced; spending. 10. Which component of GDP? A farmer purchases a new machine that will help him harvest corn twice as fast. A) Consumption. B) Government spending. C) Investment (in physical capital). D) Net Exports. Show Answer Correct Answer: C) Investment (in physical capital). 11. During an expansion which is true? A) High unemployment. B) Deflation. C) Lower unemployment. D) GDP is stable. Show Answer Correct Answer: C) Lower unemployment. 12. Bill just started a new graphic design business. He is advertising online and trying to gain customers. He just finished working with his first client. In which business life cycle stage is Bill? A) Exit plan. B) Existence. C) Survival. D) Success. Show Answer Correct Answer: B) Existence. 13. Which of the following describes the cirtuous cycle? A) A respresentation concerning the patterns of expansion and contraction in the economy, consisting of the growth, peak, recession and trough phases. B) Increase in sales results in increase in production which causes increase in employment leading to increased income which starts the cycle over again. C) The lowest levels experienced during a recession. D) The period in which business activity has reached a maximum. Show Answer Correct Answer: B) Increase in sales results in increase in production which causes increase in employment leading to increased income which starts the cycle over again. 14. Government closes schools for the month of March. A) GDP decreases. B) GDP increases. C) No change. D) None of above. Show Answer Correct Answer: A) GDP decreases. 15. Which of the following is NOT an indicator of the business cycle? A) Labor force. B) Wages. C) Labor costs and productivity. D) Birth rate. Show Answer Correct Answer: D) Birth rate. 16. An economy is officially considered to be in recession after two consecutive (continuous) quarters of falling GDP. A) True. B) False. Show Answer Correct Answer: A) True. 17. Calculated in GDP? Flour used by a grocery store to bake Italian bread to sell in their bakery. A) Yes. B) No. Show Answer Correct Answer: B) No. 18. What will happen to people with built in Cost of Living Adjustments (COLA) to their income when inflation increases unexpectedly? A) Unaffected. B) Suffer. C) Benefit. D) Hurt. Show Answer Correct Answer: A) Unaffected. 19. Which market segment shares a customer's location? A) Demographic. B) Behavioral. C) Geographical. D) Psychographic. Show Answer Correct Answer: C) Geographical. 20. Total market value for all goods and services produced within the borders of a country during a specific time period A) Productivity. B) Equity. C) Dividends. 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 5Business Cycles Quiz 6Business Cycles Quiz 7Business Cycles Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books