This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Business Cycles > Business Cycles – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The more money people invest in businesses, the more money businesses have to grow. Therefore, investment affects the business cycle. A) FALSE. B) TRUE. Show Answer Correct Answer: B) TRUE. 2. ..... is the grouping of individuals into departments. A) Centralization. B) Decentralization. C) Centralmentalization. D) Departmentalization. Show Answer Correct Answer: D) Departmentalization. 3. What is happening to GDP during the expansionary phase? A) Highest. B) Decreasing. C) Lowest. D) Increasing. Show Answer Correct Answer: D) Increasing. 4. 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. 5. 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. 6. 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. 7. What type of unemployment occurs when there is a decline in business activity resulting in layoffs? A) Frictional. B) Structural. C) Cyclical. D) Seasonal. Show Answer Correct Answer: C) Cyclical. 8. GDP measures the worth/value of a country's production and spending using the ..... A) Capybara. B) Expenditure Approach. C) Income Approach. D) Frying Pan. Show Answer Correct Answer: B) Expenditure Approach. 9. Which of the following best describes what is occurring when an economy's actual output is above its full employment level of output? A) A recession. B) A trough. C) A positive output gap. D) A negative output gap. E) Economic growth. Show Answer Correct Answer: C) A positive output gap. 10. 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) GDP Per Capita. B) Gross National Product (GNP). C) Gross National Income (GNI). D) Gross Domestic Product (GDP) . Show Answer Correct Answer: D) Gross Domestic Product (GDP) . 11. Business Life Cycle StagesStage 4-When an owner decides whether to continue growing the business and how to finance growth. A) Resourse Maturity Stage. B) Survival. C) Pivot or Persist. D) Take-Off Stage. E) Exit Plan Stage. Show Answer Correct Answer: D) Take-Off Stage. 12. Which of the following is NOT an influence on the business cycle? A) External shocks. B) Speculation and "bubbles". C) Fiscal policy of the government. D) Net national income. Show Answer Correct Answer: D) Net national income. 13. Which of the following types of authority gives the supervisor the right to direct the work of his or her employees without consulting others? A) Functional authority. B) Staff authority. C) Department authority. D) Line authority. Show Answer Correct Answer: D) Line authority. 14. A(n) ..... is a systematic grouping of individuals which has been brought together to accomplish a goal. A) Affiliation. B) Organization. C) Concord. D) Informal structure. Show Answer Correct Answer: B) Organization. 15. Keith lost his job at his company's telephone switchboard when the company installed an automated phone system. Which type of unemployment did Keith experience? A) Structural. B) Frictional. C) Cyclical. D) Seasonal. Show Answer Correct Answer: A) Structural. 16. You work for a clothing manufacturer that has excessive inventory. You have been laid off until things pick up. A) Structural. B) Frictional. C) Cyclical. D) Seasonal. Show Answer Correct Answer: C) Cyclical. 17. When you are out of work because you have been replaced by a robot ..... that is ..... A) Frictional Unemployment. B) Structural Unemployment. C) Structural (Technological Unemployment). D) Institutional Unemployment. Show Answer Correct Answer: C) Structural (Technological Unemployment). 18. Sarah is a forty year old investment banker who was laid off six months ago. She decided to switch careers and has spent those six months figuring out what to do next instead of applying for jobs in the banking industry. A) Structurally Unemployed. B) Employed. C) Fictionally Unemployed. D) Not a part of the labor force. Show Answer Correct Answer: C) Fictionally Unemployed. 19. This type of inflation results from an consumers wanting more products than are produced. A) Cost push inflation. B) Demand pull inflation. C) Divisional inflation. D) Structural inflation. Show Answer Correct Answer: B) Demand pull inflation. 20. Inflation Rate = A) PPI X CPI / 100. B) CPI of Base Year-CPI of Current Year/CPI of Current Year X 100. C) PPI / CPI X 100. D) CPI Current Year-CPI of Previous Year/CPI of Previous Year X 100. Show Answer Correct Answer: D) CPI Current Year-CPI of Previous Year/CPI of Previous Year X 100. 21. A business-to-business commercial transaction between businesses. A) RETAIL. B) B2C. C) WHOLESALE. D) B2B. Show Answer Correct Answer: D) B2B. 22. The process of increasing the amount of capital per worker. A) Capital Deepening. B) Technological Progress. C) Saving. D) Savings Rate. Show Answer Correct Answer: A) Capital Deepening. 23. Which component of GDP? The construction of roads by the government. A) Consumption. B) Net Exports. C) Government spending. D) Investment (in physical capital). Show Answer Correct Answer: C) Government spending. 24. "Dunder Mifflin Corporation Fires 5, 000 Employees" This headline affects which economic indicator the most? A) Consumer Price Index. B) Inflation. C) Consumer Spending. D) Unemployment rates. Show Answer Correct Answer: D) Unemployment rates. 25. The consumer price index is commonly used to check the economy for signs of inflation. A) False. B) True. Show Answer Correct Answer: B) True. 26. Which option is considered to be an economic goal for a country? A) Increasing employment. B) Decreasing GDP. C) Reducing inflation. D) Increasing poverty. Show Answer Correct Answer: A) Increasing employment. 27. Calculated in GDP? A consumer purchases a used vinyl album. A) No. B) Yes. Show Answer Correct Answer: A) No. 28. GDP does not include A) Government expenditures. B) Niether exports nor imports. C) Sales of used cars. D) Business investment. Show Answer Correct Answer: C) Sales of used cars. 29. Business Life Cycle StagesStage 2-Income and customers begin to grow A) Success Stage. B) Resourse Maturity Stage. C) Take-Off Stage. D) Survival. E) Existence. Show Answer Correct Answer: D) Survival. 30. Which of the following types of authority allows input and suggestions from additional staff memebers, but does not guarantee implementation? A) Functionalauthority. B) Staff authority. C) Employer authority. D) Department authority. Show Answer Correct Answer: B) Staff authority. ← PreviousNext →Related QuizzesMacroeconomics QuizzesEconomics QuizzesBusiness Cycles Quiz 1Business Cycles Quiz 2Business Cycles Quiz 3Business Cycles Quiz 5Business Cycles Quiz 6Business Cycles Quiz 7Business Cycles Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books