Business Quiz: Measuring Economic Activity

20 Questions | Total Attempts: 918

SettingsSettingsSettings
Please wait...
Business Management Quizzes & Trivia

The test covers ch 2 which provides students with an understanding of measurements commonly used to gauge economic activity and business conditions in our society.


Questions and Answers
  • 1. 
    The most widely used measure of national output is called:
    • A. 

      GDP

    • B. 

      CPI

    • C. 

      Unemployment rate

    • D. 

      Retail sales

  • 2. 
    This measure compares the prices of a group of selected items each year to some earlier year:
    • A. 

      GDP

    • B. 

      CPI

    • C. 

      Retail sales

    • D. 

      Unemployment rate

  • 3. 
    Another way to measure economic growth is output per person also known as:
    • A. 

      GDP per capita

    • B. 

      CPI per capita

    • C. 

      Adjusted GDP

    • D. 

      Population per capita

  • 4. 
    Which of the following would not be included in GDP?
    • A. 

      Exports to other countries

    • B. 

      Purchases of computers by government

    • C. 

      Automobiles purchased

    • D. 

      Dinner preparation for your family

  • 5. 
    Productivity would likely increase as a result of:
    • A. 

      Higher taxes

    • B. 

      Expanded production technology

    • C. 

      Decreased training programs

    • D. 

      Lower government spending

  • 6. 
    Retail sales include:
    • A. 

      Taxes collected

    • B. 

      Companies buyng new equipment

    • C. 

      Borrowing by business

    • D. 

      School supplies bought by students

  • 7. 
    The movement of the economy from one condition to another and back again is called:
    • A. 

      Business cycle

    • B. 

      Prosperity

    • C. 

      Production cycle

    • D. 

      Peak level

  • 8. 
    A period in usually the high point of the business cycle is known as:
    • A. 

      Recovery

    • B. 

      Prosperity

    • C. 

      Deflation

    • D. 

      Reverse Recession

  • 9. 
    An increase in the general level of prices is called:
    • A. 

      Inflation

    • B. 

      Deflation

    • C. 

      CPI

    • D. 

      Price recovery

  • 10. 
    Deflation results in lower buying power of money.
    • A. 

      True

    • B. 

      False

  • 11. 
    When consumers increase their borrowing, interest rates tend to decline.
    • A. 

      True

    • B. 

      False

  • 12. 
    The phase of a business cycle in which unemployment is the highest is:
    • A. 

      Recovery

    • B. 

      Recession

    • C. 

      Prosperity

    • D. 

      Depression

  • 13. 
    Money spent by a business for items, such as land, buildings, equipment, that will be used for a long period of time:
    • A. 

      Discount spending

    • B. 

      Capital spending

    • C. 

      Personal spending

    • D. 

      Debt spending

  • 14. 
    This investment item represents debt for an organization:
    • A. 

      Stock

    • B. 

      Bond

    • C. 

      Annuity

    • D. 

      Equity

  • 15. 
    When a government spends more than it takes it, this situation creates a:
    • A. 

      Budget surplus

    • B. 

      Budget deficit

    • C. 

      Budget windfall

    • D. 

      Budget debt ceiling

  • 16. 
    Equity refers to:
    • A. 

      Reduced spending by government

    • B. 

      Ownership in a company or other asset

    • C. 

      Borrowing to finance a capital project

    • D. 

      Increased government taxes

  • 17. 
    Which of the following would most likely cause a budget surplus for government?
    • A. 

      Higher sepnding

    • B. 

      Lower spending

    • C. 

      Higher borrowing

    • D. 

      Lower taxes

  • 18. 
    Which country has the highest GDP per capita as of reported in February 2020?
    • A. 

      United States

    • B. 

      Canada

    • C. 

      China

    • D. 

      Japan

  • 19. 
    The total amount owed by the federal government is called the:
    • A. 

      National debt

    • B. 

      Federal deficit

    • C. 

      Debt ceiling

    • D. 

      US budget

  • 20. 
    This represents ownership in a corporations:
    • A. 

      Stock

    • B. 

      Bond

    • C. 

      Certificate

    • D. 

      Budget

Back to Top Back to top