This quiz works best with JavaScript enabled. Home > Finance > Economics > Macroeconomics > Business Cycles > Business Cycles – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Business Cycles Quiz 8 (16 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Calculated in GDP? The services of a stay at home mom taking care of her own children. A) No. B) Yes. Show Answer Correct Answer: A) No. 2. Aggregate is another word for ..... A) Aggravate. B) Total. C) Supply. D) Demand. Show Answer Correct Answer: B) Total. 3. Which participant in the circular flow diagram is also known as the consumers? A) Households. B) The foreign sector . C) Government. D) Businesses. Show Answer Correct Answer: A) Households. 4. Which of the following is the principle in which an employee should have only one supervisor to whom he or she is responsible? A) Span of control. B) Authorization. C) Supervision. D) Chain of command. Show Answer Correct Answer: D) Chain of command. 5. Costco builds a new store in Noblesville, Indiana. Where would this show up in the GDP formula? (GDP=C+I+G+(X-M)) A) Investment (Business). B) Consumption (Consumer). C) Exports-Imports. D) Government Spending. Show Answer Correct Answer: A) Investment (Business). 6. Ellie owns a tumbling gym. She compiled a list of nearby competitors. Classify the following business as either direct or indirect competition:Martial arts center A) Indirect competition. B) Direct competition. Show Answer Correct Answer: A) Indirect competition. 7. Which market segment shares a customer's age, gender, and ethnicity? A) Psychographic. B) Geographical. C) Demographic. D) Behavioral. Show Answer Correct Answer: C) Demographic. 8. What is happening to Inflation during the peak phase? A) Increasing. B) Highest. C) Lowest. D) Decreasing. Show Answer Correct Answer: B) Highest. 9. Two consecutive quarterly declines in gross domestic product; also known as contraction A) Business Cycle. B) Recession. C) Growth. D) Trough. Show Answer Correct Answer: B) Recession. 10. Measurement of physical output for each unit of input used; usually referring to labor hours A) Dividends. B) Opportunity Cost. C) Productivity. D) Equity. Show Answer Correct Answer: C) Productivity. 11. Which term describes the phases of expansion and contraction in an economy over time? A) Prosperity. B) Business cycles. C) Recessions. D) Total product oscillations. Show Answer Correct Answer: B) Business cycles. 12. Which of the following is an advantage of a divisional structure? A) It often increases efficiency. B) It frees headquarter staff from being concerned with everyday activities. C) It helps reduce costs. D) It can create duplication of activities and resources. Show Answer Correct Answer: B) It frees headquarter staff from being concerned with everyday activities. 13. The trade in exotic animals being illegally sold as pets is a multi-billion-dollar-a-year industry. Is this included in GDP? A) No-Non-market activity. B) Yes-Government Spending. C) Yes-Consumer spending. D) No-Underground Economy. Show Answer Correct Answer: D) No-Underground Economy. 14. How does a business benefit from the recovery phase of the business cycle? A) Increased consumer confidence, higher demand for goods and services, and potential for decreased profits. B) Decreased consumer confidence, lower demand for goods and services, and potential for decreased profits. C) Stagnant consumer confidence, stable demand for goods and services, and potential for decreased profits. D) Increased consumer confidence, higher demand for goods and services, and potential for increased profits. Show Answer Correct Answer: D) Increased consumer confidence, higher demand for goods and services, and potential for increased profits. 15. Which of the following shifts aggregate supply to the right? A) Technology that increases the profitability of goods. B) A decrease in the money supply. C) The repeal of an investment tax credit. D) A decrease in the price level. Show Answer Correct Answer: A) Technology that increases the profitability of goods. 16. What is the correct formula for calculating the unemployment rate in the US? A) #unemployed/labor force x100. B) #labor force/60, 000 (BLS household survey. C) #unemployed/#employed x100. D) #labor force/working age population x100. Show Answer Correct Answer: A) #unemployed/labor force x100. ← PreviousRelated QuizzesMacroeconomics QuizzesEconomics QuizzesBusiness Cycles Quiz 1Business Cycles Quiz 2Business Cycles Quiz 3Business Cycles Quiz 4Business Cycles Quiz 5Business Cycles Quiz 6Business Cycles Quiz 7 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books