Understanding Business Cycles
Quiz Summary
0 of 11 Questions completed
Questions:
Information
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading…
You must sign in or sign up to start the quiz.
You must first complete the following:
Results
Results
0 of 11 Questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 point(s), (0)
Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)
| Average score |
|
| Your score |
|
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- 11
- Current
- Review / Skip
- Answered
- Correct
- Incorrect
-
Question 1 of 11
1. Question
Overview of the Business Cycle
An economic trough is most closely associated with:
CorrectIncorrect -
Question 2 of 11
2. Question
Overview of the Business Cycle
Which of the following will most likely cause housing sector activity in a city to accelerate?
CorrectIncorrect -
Question 3 of 11
3. Question
Theories of the Business Cycle
Which of the following schools argue that government intervention is beneficial to bring an economy out of recession?
CorrectIncorrect -
Question 4 of 11
4. Question
Theories of the Business Cycle
Match the following theories to their economic school. (Drag and drop)
Sort elements
- Misguided government interventions are the cause of business cycles, so government should avoid taking action.
- Money Supply has the greatest effect on the economy. A policy of steady and predictable increases in the money supply by the central bank helps to reduce volatility of business cycles.
- Wages are downward sticky, so expansionary fiscal policy is necessary to bring an economy out of a long and deep recession
- Economy has a natural tendency towards full-employment equilibrium, so no intervention is needed.
-
Austrian
-
Monetarist
-
Keynesian
-
Neoclassical
CorrectIncorrect -
Question 5 of 11
5. Question
Unemployment
Match the descriptions to the type of unemployment. (drag and drop)
Sort elements
- People are unemployed because they lack the necessary skills that are needed by employers in the economy
- At any time, there are always some people who are unemployed as it takes time to find a new job
- During a recession, more people get unemployed as firms downsize and retrench
-
Structural unemployment
-
Frictional unemployment
-
Cyclical unemployment
CorrectIncorrect -
Question 6 of 11
6. Question
Unemployment
The working-age population of a small country is as follows:
Employed (full-time) 74 Employed (part-time) 13 Unemployed 6 Voluntarily unemployed 11 Discouraged workers 5 All categories are mutually exclusive.
What is the participation ratio of the country?
CorrectIncorrect -
Question 7 of 11
7. Question
Unemployment
The working-age population of a small country is as follows:
Employed (full-time) 74 Employed (part-time) 13 Unemployed 6 Voluntarily unemployed 11 Discouraged workers 5 All categories are mutually exclusive.
What is the unemployment rate of the country?
CorrectIncorrect -
Question 8 of 11
8. Question
Inflation
In the short run, cost-push inflation will most likely __________ in the economy.
CorrectIncorrect -
Question 9 of 11
9. Question
Inflation
To bring down high inflation due to demand pressures, the most appropriate government/central bank action is to:
CorrectIncorrect -
Question 10 of 11
10. Question
Measuring Inflation
The basket of goods for CPI is as such in the base year (CPI=100):
Good Qty Price Coffee 80kg $1.20/kg Tea 50kg $0.70/kg In the current year:
Good Qty Price Coffee 90kg $1.80/kg Tea 30kg $1.50/kg Calculate the CPI (Fisher index) for the current year.
CorrectIncorrect -
Question 11 of 11
11. Question
Match the following economic indicators to their type (based on US economy).
Sort elements
- Initial claims for unemployment insurance
- Employees on non-farm payrolls
- Inventory-to-sales ratio
-
Leading Indicator
-
Coincident Indicator
-
Lagging Indicator
CorrectIncorrect
