This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Business Cycles > Business Cycles – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. You worked for a company that makes music CDs. With the increase in consumers downloading music, your company has filed bankruptcy. You are out of a job. A) Cyclical. B) Frictional. C) Structural. D) Seasonal. Show Answer Correct Answer: C) Structural. 2. What type of unemployment occurs when advanced technology takes your job? A) Seasonal. B) Frictional. C) Cyclical. D) Structural. Show Answer Correct Answer: D) Structural. 3. What is happening to GDP during the trough phase? A) Highest. B) Decreasing. C) Increasing. D) Lowest. Show Answer Correct Answer: D) Lowest. 4. A British company purchases a one-year membership to PartyFolks.com, a U.S. based company A) U.S. GDP increases. B) U.S. GDP decreases. C) No change. D) None of above. Show Answer Correct Answer: A) U.S. GDP increases. 5. The producer price index measures the average change in price during a time period of raw materials bought by producers. A) True. B) False. Show Answer Correct Answer: A) True. 6. Which component of GDP? Whirlpool makes a washer in Michigan and sells it to a Chinese consumer. A) Investment (in physical capital). B) Net Exports. C) Consumption. D) Government spending. Show Answer Correct Answer: B) Net Exports. 7. A Halloween Spirit Worker will experience what type of unemployment? A) Structural. B) Seasonal. C) Cyclical. D) Frictional. Show Answer Correct Answer: B) Seasonal. 8. The two reasons that caused the longest expansion period were the Dot Com era which help the expansion of the internet. the second reason is a balanced budget for U.S. Government Spending. A) Truth just for the balanced budget of Government Spending. . B) False. C) True. D) Truth but just for the Dotcom era. Show Answer Correct Answer: C) True. 9. Cyclical unemployment most commonly occurs at what points in the business cycle A) Expansion/Trough. B) Recession/Peak. C) Expansion/Recession. D) Trough/Recession. Show Answer Correct Answer: D) Trough/Recession. 10. Nicole was laid off as a waitress when her restaurant closed down due to the slow economy. Nicole is considered A) Cyclically unemployed. B) Frictionally unemployed. C) Seasonally unemployed. D) Not in the labor force. Show Answer Correct Answer: A) Cyclically unemployed. 11. Michael owns a small but profitable tech company. He has been approached by a larger company that wants to purchase his business. In which business life cycle stage is Michael? A) Exit plan. B) Survival. C) Success. D) Existence. Show Answer Correct Answer: A) Exit plan. 12. An assembly line is an example of ..... A) Chain of command. B) Span of control. C) Work specialization. D) Supervision. Show Answer Correct Answer: C) Work specialization. 13. The oil field in Texas has busted and you have lost your job at a refinery. You would be under what category of unemployment? A) Seasonal. B) Structural. C) Frictional. D) Cyclical. Show Answer Correct Answer: D) Cyclical. 14. Which of the following types of departmentalization groups activities based on work or customer flow? A) Marketing departmentalization. B) Process departmentalization. C) Functional departmentalization. D) Homogeneous departmentalization. Show Answer Correct Answer: B) Process departmentalization. 15. A private business purchasing machinery for it's production is WHAT FACTOR of GDP A) Government Spending. B) Consumer spending. C) Exports. D) Investment. Show Answer Correct Answer: D) Investment. 16. Which of the following is the correct ordr of organizational levels? A) Middle managers, operative employees, supervisors, top management. B) Middle managers, supervisors, operative employees, top management. C) Operative employees, supervisors, middle managers, top management. D) Operative employees, middle managers, supervisors, top management. Show Answer Correct Answer: C) Operative employees, supervisors, middle managers, top management. 17. Which of the following describes the term productivity? A) Measurement of physical output for each unit of input used, usually referring to labor hours. B) The period in which business activity has reached a maximum. C) Two consecutive quarterly declines in Gross Domestic Product. D) The sum or whole amount of something. Show Answer Correct Answer: A) Measurement of physical output for each unit of input used, usually referring to labor hours. 18. Unemployment caused by a downturn in economic activity A) Frictional unemployment. B) Cyclical unemployment. C) Structural unemployment. D) Employed. E) Voluntary unemployment. Show Answer Correct Answer: B) Cyclical unemployment. 19. Distribution of a share of the company's earnings to its shareholders A) Dividends. B) Productivity. C) Equity. D) Opportunity Cost. Show Answer Correct Answer: A) Dividends. 20. Which of the following lists each part of the business cycle? A) Peak, Downhill, Pit, Expansion. B) Rise, Fall, Fallout, Resolution. C) Peak, Recession, Trough, Expansion. D) Peak, Recession, Pit, Explosion. Show Answer Correct Answer: C) Peak, Recession, Trough, Expansion. 21. Which market segment shows how a customer views the world? A) Psychographic. B) Demographic. C) Behavioral. D) Geographical. Show Answer Correct Answer: A) Psychographic. 22. 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. 23. 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. 24. 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) Economic Contraction. B) Capital Deepening. C) The Business Cycle. D) Technological Progress. Show Answer Correct Answer: B) Capital Deepening. 25. What are the four parts of the business cycle? A) Expansion-Peak-Recession-Trough. B) Expansion-Retraction-Infraction-Sublaction. C) Infraction-Trough-Recession-Peak. D) Expansion-Peak-Sloth-Plummet. Show Answer Correct Answer: A) Expansion-Peak-Recession-Trough. 26. 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. 27. 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. 28. Value of shares the company issues A) Opportunity Cost. B) Dividends. C) Equity. D) Productivity. Show Answer Correct Answer: C) Equity. 29. Which of the following types of departmentalization involves grouping of individuals into departments based on different tasks? A) Functional departmentalization. B) Product departmentalization. C) Target market departmentalization. D) Process departmentalization. Show Answer Correct Answer: A) Functional departmentalization. 30. Calculated in GDP? Farmer's purchase of a new tractor. A) Yes. B) No. Show Answer Correct Answer: A) Yes. Next →Related QuizzesMacroeconomics QuizzesEconomics QuizzesBusiness 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