( Best 20+ ) Trade Cycle MCQ

by Mr. DJ

Trade Cycle MCQ

A trade cycle refers to fluctuations in economic activities specially in employment, output and income, prices, profits etc. It has been defined differently by different economists. According to Mitchell, “Business cycles are of fluctuations in the economic activities of organized communities.

Trade Cycle MCQ

Trade Cycle MCQ

1. The trough of a business cycle occurs when _____ hits its lowest point.

A. inflation

B. the money supply

C. aggregate economic activity

D. the unemployment rate

2. The low point in the business cycle is referred to as the

A. expansion.

B. boom.

C. trough.

D. peak.

3. When aggregate economic activity is increasing, the economy is said to be in

A. an expansion.

B. a contraction.

C. a peak.

D. a turning point.

4. In a boom:

A. Unemployment is likely to fall

B. Prices are likely to fall

C. Demand is likely to fall

D. Imports are likely to fall

5. Peaks and troughs of the business cycle are known collectively as

A. volatility.

B. turning points.

C. equilibrium points.

D. real business cycle events.

6. When aggregate economic activity is declining, the economy is said to be in

A. a contraction.

B. an expansion.

C. a trough.

D. a turning point.

7. Industries that are extremely sensitive to the business cycle are the

A. durable goods and service sectors.

B. nondurable goods and service sectors.

C. capital goods and nondurable goods sectors.

D. capital goods and durable goods sectors.

8. Economists use the term shocks to mean

A. unexpected government actions that affect the economy.

B. typically, unpredictable forces that have major impacts on the economy.

C. sudden rises in oil prices.

D. the business cycles.

9. Primarily, macroeconomists use microeconomic principles to study

A. business cycles and trends in the stock market.

B. long-run economic growth and antitrust policies.

C. trends in the stock market and long-term economic growth.

D. long-run economic growth and business cycles.

10. The two most important American business cycle events of the twentieth century were

A. the Great Depression and stagflation.

B. World War II and the Great Depression.

C. the productivity slowdown and the Great Depression.

D. government budget deficits and World War II.

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