PBMF Semester 1 Exam (2022)

On a business cycle graph, what is the phase called when there is a downward slope and GDP is falling?

• Peak

• Trough

• Slump

• Recession

• Shock

GDP is an important economic measurement because it

• provides valuable data on unemployment rates.

• provides valuable data on inflation rates.

• measures the value of final goods and services produced by a country.

• measures only the exports of a country

Which term describes the phases of expansion and contraction in an economy over time?

• Recessions

• Prosperity

• Total product oscillations

• Business cycles

The Business Cycle measures ___ over time.

• wealth

• inflation

• economic growth

Which part of the business cycle is when there is a prolonged period of high unemployment, weak consumer sales, GDP is falling rapidly, and people can't afford to satisfy basic needs?

• Prosperity

• Recession

• Depression

• Recovery

Which part of the business cycle is when unemployment begins to decrease, GDP rises, people gain employment, and consumers regain confidence and buy more?

• Prosperity

• Recession

• Depression

• Recovery

What is it called when there is an increase in prices?

• Inflation

• Recession

• Recovery

• Deflation

What is it called when you give up a good or service for another good or service?

• Opportunity cost

• Economic decisions

• Buying power

• None of the above

Which type of economic system provides many services for its people, such as healthcare, but most of its resources are government owned?

• Capitalism

• Communism

• Socialism

• Partialism

Which type of competition is known as the perfect competition?

• Pure

• Monopolistic

• Oligopoly

• Monopoly