Economics - The Business Cycle

25 Questions | Attempts: 864

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Economics - The Business Cycle - Quiz

Questions and Answers
  • 1. 
    People or groups who combine resources to make goods or services are called:
    • A. 

      Producers

    • B. 

      Consumers

    • C. 

      Capital

  • 2. 
    This is what is given up when an economic decision is made.
    • A. 

      Opportunity Cost

    • B. 

      Scarcity

    • C. 

      Good

    • D. 

      Supply

  • 3. 
    The condition that results from unlimited economic wants and limited resources is called:
    • A. 

      Scarcity

    • B. 

      Opportunity Cost

    • C. 

      Demand

    • D. 

      Supply

  • 4. 
    People who use resources, goods, or services to satisfy their economic wants are:
    • A. 

      Consumers

    • B. 

      Producers

    • C. 

      Entrepreneurs

  • 5. 
    The quantities of resources, goods, or services that will be PURCHASED at a various prices is the:
    • A. 

      Demand

    • B. 

      Supply

    • C. 

      Scarcity

  • 6. 
    The quantities of resources, goods, or services that are OFFERED for sale is the: 
    • A. 

      Supply

    • B. 

      Demand

    • C. 

      Scarcity

  • 7. 
    "Inflation not expected to be a problem this year." The headline above affects which economic indicator the most? 
    • A. 

      Consumer Price Index

    • B. 

      Gross Domestic Product

    • C. 

      Unemployment Statistics

  • 8. 
    "Enron Corporation Fires 5,000 Employees"The headline above affects which economic indicator the most? 
    • A. 

      Unemployment statistics

    • B. 

      Consumer Price Index

    • C. 

      Gross Domestic Product

  • 9. 
    'Ford to produce fewer sports utility vehicles (SUVs) this year' The headline above affects which economic indicator the most? 
    • A. 

      Gross Domestic Product

    • B. 

      Unemployment Statistics

    • C. 

      Consumer Price Index

    • D. 

      Option 4

  • 10. 
    'Prices for consumer goods down 5% this year!' The headline above affects which economic indicator the most? 
    • A. 

      Consumer price index

    • B. 

      Gross Domestic Product

    • C. 

      Unemployment statistics

  • 11. 
    'Business investment in capital goods (machinery for production) rises.' The headline above affects which economic indicator the most? 
    • A. 

      Gross Domestic Product

    • B. 

      Consumer Price Index

    • C. 

      Unemployment Statistics

  • 12. 
    'More opportunities for recent graduates to find jobs!' The headline above affects which economic indicator the most? 
    • A. 

      Unemployment statistics

    • B. 

      Gross Domestic Product

    • C. 

      Consumer Price Index

  • 13. 
    Fiscal policy is controlled by the President and Congress
    • A. 

      True

    • B. 

      False

  • 14. 
    Open-Market Operations involves the Federal Reserve buying and selling bonds. 
    • A. 

      True

    • B. 

      False

  • 15. 
    This economic problem refers to the overall increase in price level. 
    • A. 

      Inflation

    • B. 

      Unemployment

    • C. 

      Hyperflation

    • D. 

      Deflation

  • 16. 
    Who is included in the unemployment rate?
    • A. 

      Those who are actively seeking work but cannot find a job

    • B. 

      Part time workers who wish to work full time

    • C. 

      Those who have given up in looking for a job

    • D. 

      The retired

  • 17. 
    The picture above is mainly concerned with: 
    • A. 

      How the economy has grown throughout the years

    • B. 

      The tax revenues of the country

    • C. 

      The price of consumer goods

    • D. 

      The tariffs placed on imports

  • 18. 
    "Unemployment at an all time high!"Which of these would be an example of proper fiscal policy in this situation? 
    • A. 

      Lowering taxes and increasing government spending

    • B. 

      Raising taxes and decreasing government spending

    • C. 

      Raising the discount rate offered to banks

  • 19. 
    "United States sets a high tax on imported oil!"Which of these would be a reason why the U.S. create this policy?
    • A. 

      To protect the U.S. oil industry

    • B. 

      To decrease the cost of oil

    • C. 

      To allow for free trade of oil

  • 20. 
    The role of government is limited/non-existent in a market economy
    • A. 

      True

    • B. 

      False

  • 21. 
    In a command economy, what to produce is decided by consumer choice.
    • A. 

      True

    • B. 

      False

  • 22. 
    In the United States, a combination of command, traditional, and market forces guide economic decisions. 
    • A. 

      True

    • B. 

      False

  • 23. 
    Private ownership of business is a key characteristic of a market economy.
    • A. 

      True

    • B. 

      False

  • 24. 
    In a market economy, decisions about what to produce are made by consumers and producers. 
    • A. 

      True

    • B. 

      False

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