This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Business Cycles > Business Cycles – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the 1st economic goal of each country? A) Measure expenditures. B) Promote Economic Growth. C) Limit Inflation. D) Limit Unemployment. Show Answer Correct Answer: B) Promote Economic Growth. 2. Simple structures are flexible and inexpensive, but are often only effective in small organizations. A) False. B) True. Show Answer Correct Answer: B) True. 3. 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) Indirect competition. B) Direct competition. Show Answer Correct Answer: B) Direct competition. 4. Each individual on food stamps in Delaware can receive up to $ 194 a month. Is this included in government spending? A) No-Intermediate Goods. B) No-Purely financial Transaction. C) Yes-Consumer Spending. D) Yes-Government spending. Show Answer Correct Answer: B) No-Purely financial Transaction. 5. 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. 6. 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. 7. What is Real GDP mean? A) Net national product plus gross domestic income. B) GDP divided by everyone in the country. C) GDP adjusted for price changes from a base year. D) GDP expressed in today's dollars. Show Answer Correct Answer: C) GDP adjusted for price changes from a base year. 8. 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. 9. 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. 10. 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. 11. A ..... organization structure combines the elements of functional and product-based departmentalization. A) Simple. B) Learning. C) Divisional. D) Matrix. Show Answer Correct Answer: D) Matrix. 12. 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) 2.75 x 2, 000, 000. C) .80 x 5, 000, 000. D) .80 x 2, 000, 000. Show Answer Correct Answer: D) .80 x 2, 000, 000. 13. 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. 14. 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. 15. 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. 16. Indianapolis purchases a new fire truck. Where would this show up in GDP formula? (GDP=C+I+G+(X-M)) A) Investment (Business). B) Government Spending. C) Exports-Imports. D) Consumption (Consumer). Show Answer Correct Answer: B) Government Spending. 17. Period in which business activity has reached a maximum A) Business Cycle. B) Recession. C) Peak. D) Growth. Show Answer Correct Answer: C) Peak. 18. Which of the following types of authority can create problems of overlapping authority? A) Functional authority. B) Employer authority. C) Deparmtnet authority. D) Line authority. Show Answer Correct Answer: A) Functional authority. 19. 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) Recession. C) Trough. D) Peak. Show Answer Correct Answer: B) Recession. 20. 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. 21. Calculated in GDP? An electrician's purchase of a used truck for work. A) No. B) Yes. Show Answer Correct Answer: A) No. 22. Calculated in GDP? A Social Security check from the government to a retired store manager. A) No. B) Yes. Show Answer Correct Answer: A) No. 23. All of the following can shift aggregate supply, except A) Increased business taxes. B) An innovation in technology. C) Changes in the price level. D) Supply shocks from trading partners. Show Answer Correct Answer: C) Changes in the price level. 24. The highest point in the business cycle, characterized by low unemployment and high inflation is ..... A) Trough. B) Expansion. C) Peak. D) Contraction. Show Answer Correct Answer: C) Peak. 25. 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. 26. 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) Threat. B) Weakness. C) Opportunity. D) Strength. Show Answer Correct Answer: A) Threat. 27. 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) Unemployment. B) Average Income Level. C) Gross Domestic Product. D) Imflation/ Consumer Price Index. Show Answer Correct Answer: B) Average Income Level. 28. Nominal GDP ..... = Real GDP A) Imports. B) Inflation. C) Unemployment. D) Exports. Show Answer Correct Answer: B) Inflation. 29. Net Exports are ..... A) Exports minus Imports. B) Imports minus Exports. C) Imports divided by exports. D) Exports divided by imports. Show Answer Correct Answer: A) Exports minus Imports. 30. Inflation works to the advantage of ..... A) Pensioners. B) Debtors. C) Insurance policy holders. D) Creditors. Show Answer Correct Answer: B) Debtors. ← 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 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books