(3) Test: Business Cycle Quiz

Who first identified cyclical patterns in the economy and created what is often referred to as “the business cycle”?

• George Washington

• Clemente Juglar

• Warren Buffett

• Steve Jobs

Which of the following describes the growth part of the business cycle?

• Accounts for the time when business activity has reached a maximum

• Commonly defined as two consecutive quarterly declines in Gross Domestic Product

• Occurs when persistent increases in the key measurements of aggregate economic activities are present

• Is the lowest levels during a recession

Which of the following is NOT an indicator of the business cycle?

• Labor force

• Wages

• Labor costs and productivity

• Birth rate

Which of the following describes the term productivity?

• Measurement of physical output for each unit of input used, usually referring to labor hours

• The period in which business activity has reached a maximum

• Two consecutive quarterly declines in Gross Domestic Product

• The sum or whole amount of something

Which of the following lists each part of the business cycle?

• Peak, Recession, Trough, Expansion

• Rise, Fall, Fallout, Resolution

• Peak, Recession, Pit, Explosion

• Peak, Recession, Trough, Expansion

Which of the following describes the virtuous cycle?

• A representation concerning the patterns of expansion and contraction in the economy, consisting of the growth, peak, recession and trough phases

• Increase in sales results in increase in production which causes increase in employment leading to increased income which starts the cycle over again

• The lowest levels experienced during a recession

• The period in which business activity has reached a maximum

Which of the following is NOT a business cycle indicator?

• Labor force

• National defense

• Personal incomes and consumer attitudes

• Out of date products

What is the lowest level of a recession?

• Peak

• Trough

• Pit

• Resolution

Which of the following is a cause of a trough?

• A brand new product

• A broken product

• An expensive product

• A severely outdated product

In which of the following categories does a recession NOT cause a decline?

• Total output

• Income

• Tax rate

• Employment