CA Foundation : Business Cycle Quiz 5 Created on September 09, 2023 By admin Business Cycle Quiz 1 1 / 16 5. The business Cycles or the periodic booms and slumps in economic activities reflect the _________ in economic activities. Upward movements Downward movements Upward and downward move-ments Extreme rise 2 / 16 4. Which is not related to great depression of 1930? It stated in USA John Maynard Keynes regarded lower aggregate expenditure as the cause Excess Money Supply Both (a) and (b) 3 / 16 3. Greatest depression suffered by economy in which year. 1924 1930 2008 2009 4 / 16 2. The economy-wide fluctuations in production, trade and general economic activity is referred as : Business Cycle Economic cycle Boom-bust Cycle All of the above. 5 / 16 1. The term business cycle refers to _________. The ups and downs in production of commodities. The fluctuating levels of economic activity over a period of time. Decline in economic activities over prolonged period of time. Increasing unemployment rate and diminishing rate of savings. 6 / 16 10. The different phases of a business cycle _________ Do not have the same length and severity Expansion phase always last more than ten years Last many years and are difficult to get over in short periods None of the above 7 / 16 9. _________ state continues till there is full employment of resources and production is at its maximum possible level using available productive resources. Expansion Peak Contraction Depression 8 / 16 8. The four phases of the business cycle are _________. Peak, recession, trough, and boom Peak, depression, trough, and boom Peak, recession, trough, and recovery Peak, depression, bust, and boom 9 / 16 7. _________ represents the steady growth lien or the growth of the economy when there are no business cycles. Peak Trend Depression Expansion 10 / 16 6. Select the odd out: Expansion Boom Upswing Trough 11 / 16 15. Which phase is the Highest point of the business Cycle? Upswing Downswing Peak Trough 12 / 16 14. Which of the following does not occur during an expansion? Consumer purchases of all types of goods tend to increase. Employment increases as demand for labour rises. Business profits and business confidence tend to increase None of the above. 13 / 16 13. The expansion phase is characterized by high growth rate. What is the next phase after expansion? Peak Contraction Downstream None of the above 14 / 16 12. Peaks and troughs of the business cycle are known collectively as _________. Volatility Turning points Equilibrium points. Real business cycle events. 15 / 16 11. In _________ phase, the overall economic activities (i.e. Production and Employment) are at the lowest level. Expansion Trough Peak Bottom 16 / 16 16. _________ is the turning point and the beginning of recession. Contraction Depression Upswing Boom Your score isThe average score is 72% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 2 Created on September 09, 2023 By admin Business Cycle Quiz 2 1 / 16 20. Which one of the following is not a feature of Contraction? Decrease in input demand pulls input prices down Increases of wage and interest earns gradually decline Producers lower their prices in order to dispose of their inventories Business Firms become optimistic about future state of economy. 2 / 16 19. Economic recession shares all of these characteristics except. Fall in the levels of investment, employment Incomes of wage and interest earners gradually decline resulting in decreased demand for goods and services Investor confidence is adversely affected and new investments may not be forthcoming Increase in the price of inputs due to increased demand for inputs 3 / 16 18. When aggregate economic activity is declining, the economy is said to be in _________ Contraction An expansion. A trough. A turning point. 4 / 16 17. A significant decline in general economic activity extending over a period of time is _________. Business cycle Contraction phase Recession Recovery 5 / 16 25. The period 1929-33 is cited for _________ of world economy. Great depression Great Recovery Great upswing Great downswing 6 / 16 24. The lowest point in the business cycle is referred to as the _________. Expansion Boom Peak Trough 7 / 16 23. The trough of a business cycle occurs when _________ hits its lowest point. Inflation in the economy The money supply Aggregate economic activity The unemployment rate 8 / 16 22. _________ phase of business cycle marks the end of pessimism and the beginning of optimism. Recovery Depression Upswing Downswing 9 / 16 21. During recession, the unemployment rate and output Rises; falls Rises; rises Falls; rises Falls; falls 10 / 16 30. Leading economic indicators _________. Are used to forecast probable shifts in economic policies Are generally used to forecast economic fluctuations Are indicators of stock prices existing in an economy Are indicators of probable recession and depression 11 / 16 29. Which of the following is not an example of coincident indicator? Industrial production Inflation Retail sales New orders for plant and equipment 12 / 16 28. Which of the following is not the phase of business cycles? Prosperity Upswing Reconstruction Depression 13 / 16 27. Boom and depreciation in business cycle are Turning points Equilibrium points Both (a) and (b) None of the above 14 / 16 26. In Recovery phase of business Cycle, the process of reversal is initially felt in the _________. Capital market Labour market Production level Financial market. 15 / 16 31. A leading indicator is _________. A variable that tends to move along with the level of economic activity. A variable that tends to move in advance of aggregate economic activity. A variable that tends to move consequent on the level of aggregate economic activity. None of the above. 16 / 16 32. A variable that tends to move later than aggregate economic activity is called _________. A leading variable. A coincident variable. A lagging variable. A cyclical variable. Your score isThe average score is 59% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 1 Created on September 09, 2023 By admin Business Cycle Quiz 3 1 / 16 37. Which of the following macro economic variables would you include in an index of leading economic indi-cators? Employment Inflation Real interest rates Presidential investment 2 / 16 36. When once peak is reached, increase in demand is salted, then _________ phase begins? Trough Contraction Expansion Trend 3 / 16 35. Last stage of recession is called: Depreciation Recovery Slowdown All of these 4 / 16 34. Which of the following is true about leading indicators? Measurable economic factors Changes after real output Both (a) and (b) None 5 / 16 33. Which of the following best describes a typical business cycle? Economic expansions are followed by economic contractions. Inflation is followed by rising income and unemployment. Economic expansions are followed by economic growth and development. Stagflation is followed by inflationary economic growth. 6 / 16 41. Economics activities will be declining in the phase of _________. Expansion Depression Contraction Peak 7 / 16 40. Rampant unemployment is found in: Boom Recovery Contraction Depression 8 / 16 39. Fashion Retailer is business of? Cyclical business Sun rise business Sluggish business None of these 9 / 16 39. Fashion Retailer is business of? Cyclical business Sun rise business Sluggish business None of these 10 / 16 38. An economic variable that moves in the opposite direction as aggregate economic activity down in expansions, up in contractions is called. Procyclical Countercyclical A cyclical A leading variable 11 / 16 46. Which of the following statement is False? No economy follows a perfectly timed Cycle. Business Cycles vary in intensity and length. There is no set pattern which Business Cycles follow. Every Business Cycle has relatively longer period. 12 / 16 45. Thegreat depression of _________ is still cited for the enormous misery and human sufferings it caused. 1929- 1930 1929- 1931 1929- 1932 1929- 1933 13 / 16 44. _________ is the severe form of _________. Depression, Recovery Depression, Recession Recession, Depreciation Recession, Recovery. 14 / 16 43. The economy cannot continue to grow endlessly. Once Peak is reached, _________ in demand is halted & starts _________ in certain sectors. Increase, decreasing Decrease, Increasing Increase, Increasing Decrease, Decreasing. 15 / 16 42. In the later stages of expansion, inputs are difficult to find as they are _________ of their demand and there-fore & input prices _________. Short, increase Excess, increases Short, decrease Excess, decrease 16 / 16 47. Industries that are extremely sensitive to the business cycle are the _________. Durable goods and service sec-tors. Non-durable goods and service sectors Capital goods and non-durable goods sectors. Capital goods and durable goods sectors. Your score isThe average score is 56% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 1 Created on September 09, 2023 By admin Business Cycle Quiz 4 1 / 16 56. The disturbances in one or more Sectors _________ other Sectors. Do not affect Equally affect Gets easily transmitted to all None of the above. 2 / 16 55. What is incorrect about business Cycle? They occur periodically They exhibit same regularity The duration of Cycles vary The intercity of fluctuations also varies. 3 / 16 54. Business Cycles have _________ consequences on the well-being of the society. Some Serious No Moderate 4 / 16 53. Repercussions of Business Cycles get simultaneously felt on the economic variable: Output and employment Investment & Consumption Interest, Trade & Price levels All of the above. 5 / 16 52. Business Cycles are exceedingly Complex phenomena because. They do not have uniform characteristics and causes. They are caused by varying factor. It is difficult to make an accurate prediction of trade cycles before their occurrence. All of the above 6 / 16 51. Which is not the characteristic feature of expansion phase in business cycle? Increase in national output Unemployment Rise in price and costs Boost in business confidence 7 / 16 50. Which of the following is not a characteristic of business cycles _________. Business cycles have serious consequences on the well being of the society. Business cycles occur periodically, although they do not exhibit the same regularity. Business cycles have uniform characteristics and causes. Business cycles are contagious and unpredictable. 8 / 16 49. Features of business cycles include? Discuss periodically Have four different phases Originate in free Market Economy All of the above. 9 / 16 48. Business Cycle occurs _________. Periodically In different phases Both (a) and (b) None of the above 10 / 16 57. Business Cycles may occur due to _________. External Causes Internal Causes Both (a) and (b) None 11 / 16 58. According to some economists, _________ are the prime causes of business cycles. Fluctuations in effective demand Fluctuations in investments Macroeconomic policies All of the above 12 / 16 59. Which internal factor affect the Business cycle? Fluctuations in investment Natural factors Technology shocks Population growth 13 / 16 60. The internal causes of business cycle is _________. Fluctuation in effective demand Technology shocks Both (a) and (b) None 14 / 16 61. A decrease in government spending would cause _________. The aggregate demand curve to shift to the right. The aggregate demand curve to shift to the left. A movement down and to the right along the aggregate demand curve. A movement up and to the left along the aggregate demand curve. 15 / 16 62. Modern business activities are based on the anticipations of business community and are affected by waves of optimism or pessimism, according to _________. External Causes Internal Causes Both (a) & (b) Either (a) or (b) 16 / 16 63. According to _________ trade cycles occur due to onset of in-novations. Hawtrev ADAM Smith J M Kevnes Schumpeter Your score isThe average score is 93% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 1 Created on September 09, 2023 By admin Business Cycle Quiz 5 1 / 16 64. Whose statement out of these is false? Hawtrey – “Trade cycle is purely Monetary phenomena” Keynes – “Fluctuations in aggre-gate Demand” Pigou – “Fluctuations in invest-ment” Schumpeter – “Innovations” 2 / 16 65. The most probable outcome of an increase in the money supply is _________. Interest rates to rise, investment spending to rise, and aggregate demand to rise. Interest rates to rise, investment spending to fall, and aggregate demand to fall. Interest rates to fall, investment spending to rise, and aggregate demand to rise. Interest rates to fall, investment spending to fall, and aggregate demand to fall. 3 / 16 66. In the long run, a reduction in labour supply would cause output to _________ and the aggregate price level to _________. Fall, rise Fall, fall Rise, fall Rise, rise. 4 / 16 76. When companies lay off workers, consumers lose their jobs and stop buying anything but necessitates. That causes a _________. Downward Spiral Cross Spiral Upward Spiral Triangle Spiral 5 / 16 75. In a free market economy, where maximization of profits is the aim of business, a higher level of aggregate demand will induce businessmen to produce more. As a request, there will be more _________. Output Income Employment All of these 6 / 16 74. According to _________, modern business activities are based on the anticipations of business Community and one affected by waves of optimism or pessimism. Pigou Schumpeter Adam Smith Hawtrey 7 / 16 73. According to _________, Trade Cycle is a purely monetary phenom-enon. Nicholas Kaldor Hawtrey Adam Smith Schumpeter 8 / 16 72. Who propounded the Cobweb theory? Nicholas Kaldor Hawtrey Adam Smith Schumpeter 9 / 16 71. _________ theory holds that business cycles result from the fact that present prices substantially influence the production at some future date. Schumpeter’s Hawtrev’s Cobweb Pigou’s 10 / 16 70. The external causes which may lead to boom or bust do not include: Psychological Factors Wars Technology Shocks Natural Factors 11 / 16 69. The difference between exports and imports is the _________ for goods and Services. Not foreign demand Gross Foreign demand Net Outflow Net Inflow 12 / 16 68. According to which economist trade cycle is a purely monetary for phenomenon _________. Schumpeter Pigou’ Hawtrey Marshall 13 / 16 67. Endogenous factors refers to _________ causes: Internal External Economic Ecological 14 / 16 77. _________ is considered to be the most volatile Component of the aggregate demand. Investment Spending Saving Flow Expenditure behaviour None of these 15 / 16 78. Investments may rise when the rate of interest is _________ in the economy. High Moderate Low Very high 16 / 16 79. Increase in investment; shift the aggregate demand to the _________, leading to _________. Right, economic expansion Right, depression Left, economic expansion Left, depression. Your score isThe average score is 100% LinkedIn Facebook Twitter VKontakte 0% Restart quiz 1 Created on September 09, 2023 By admin Business Cycle Quiz 6 1 / 17 86. The period of prosperity opens up new and superior opportunities for _________ thereby promotes business. Investment and Unemployment Employment and Production Production, Unemployment & Savings Investment, Employment and Production 2 / 17 85. Business Cycles effect _________ of an economy. Social Aspects Economic Aspects All Aspects No Aspects 3 / 17 84. How many phases are their in business cycle? Four Five One Many 4 / 17 83. Which of the following is anti-inflationary measure which causes a downward pressure on the aggregate demand and the economy slows down? Reduction in Government Spending. Increase in Taxes Increase in Interest Rates All of these. 5 / 17 82. In case of softening of interest rates, _________. There will be inflationary effects and increase in unemployment rates. There will be deflationary effects and increase in unemployment rates. There will be inflationary effect and decline in employment rates. There will be deflationary effects and decline in employment rates. 6 / 17 81. The macroeconomic policies which cause business Cycles may be : Monetary Policy Fiscal Policy Both (a) & (b) None of these 7 / 17 80. The most common method of boosting aggregate demand is _________. Increased Government Spending Tax Cuts Both (a) & (b) None of these 8 / 17 96. Due to recession, employment rate and output _________ respectively. Rises and rises Falls and falls Rises and falls All of the above 9 / 17 95. The Stage/phase of the business Cycle is important for _________. Making managerial decisions regarding expansion or down-sizing. A new business to decide on entry into the market. The success of a new product. All of the above. 10 / 17 94. Which of the following business are examples of “Cyclical business” Fashion retailers, electrical goods & house-builders Restaurants, advertising and overseas tour operators Construction and other infrastructure firms All of the above 11 / 17 93. The world economy suffered the longest, deepest and most widespread depreciation of the 20th century during? 1934 1928 1930 1932 12 / 17 92. Businesses whose fortunes are closely linked to the rate of economic growth are referred to as business. FMCG Durable goods Fluctuating Cyclical 13 / 17 91. Business cycle is contagious and _________ in character? Local Regional National International 14 / 17 90. Economy-wide trends can have significant impact on _________. Capital Goods Industries FMCG Industries Social activities All types of business. 15 / 17 89. Which External Factor affect the business cycle? Population growth Variation in government spending Money supply Macro economic policies 16 / 17 88. Business Cycles have _________ influence on Business decisions. Negligible Least No Tremendous 17 / 17 87. A period of _________ reduces business opportunities and profits. Recession Depression Either (a) or (b) None of these Your score isThe average score is 100% LinkedIn Facebook Twitter VKontakte 0% Restart quiz
