EC-009

A benefit to producers and consumers of a growing economy is that it provides a. workers with guaranteed employment b. A higher standard of living c. an increase in government control d. Solutions to international problems

A higher standard of living

which of the following occurs as a result of discoveries and innovation: a. money supply decreases b. production levels decrease c. new jobs are created d. economic activities contract

New jobs are created

The top of the business cycle is known as the a. contraction b. trough c. expansion d. Peak

Peak

during which phase of the business cycle or industries and businesses producing and selling goods other maximum? a. trough b. expansion c. contraction d. peak

Peak

during which phase of the business cycle would there most likely be a shortages of workers in certain skill areas? a. trough b. peak c. contraction d. expansion

Peak

which of the following are among the internal causes of business cycles: a. political change, investment in capital goods, international relations, and money supply b. aggregate demand, money supply, investment in capital goods, and inventory c. seasonal and climatic changes, aggregate demand, inventory levels, and international relations d. discoveries and innovations, inventory levels, international relations, and money supply

aggregate demand, money supply, investment in capital goods and inventory levels

Ups and downs in the level of economic activity over a period of time are called a(n) a. inventory level b. economic growth c. business cycle d. economic system

business cycle

what are the following is considered an external cause of business cycles: a. climatic changes b. money supply c. inventory levels d. aggregate demand

climactic changes

which of the following factors characterizes the growth phase of the business cycles: a. consumers are putting more money in savings b. producers are reducing their purchases of new goods c. demand for resources exceeds their availability d. consumers and producers are borrowing more money

consumers and producers are borrowing more money

A business manager realizes that the demand for his/her products now exceeds producers capabilities, and producers have raised their prices to offset the high demand. under these conditions, what phase of the business I go to the manager begin to prepare for? a. trough b. expansion c. contraction d. peak

contraction

The fluctuations in economic activities that affect businesses are known as business a. innovations b. cycles c. outputs d. prospects

cycles

During bad economic times, people often spend less, and businesses a. decrease production b. hire more employees c. reduce vacation time d. purchase new equipment

decrease production

The economy of the country of Swizzleland is undergoing rapid changes. Unemployment is low, consumer spending is high, and factories are increasing their production capabilities. Which phase of the business cycle is Swizzleland in? a. contraction b. trough c. peak d. expansion

expansion

The period of time during the business cycle when production and employment increase is called a(n) a. trough b. contraction c. peak d. expansion

expansion

Your chances of finding and maintaining a job are greatest during the business cycle phase known as a. expansion b. contraction c. recession d. trough

expansion

when a business cycle is affected by international relations, new discoveries, and social or political changes, it is sad to have been changed by ___ factors. a. external b. internal c. extraneous d. intrinsic

external

During the peak phase of a business cycle, a business could be expected to have A. high prices. B. reduced sales. C. low profits. D. staff reductions.

high prices

which of the following is a characteristic of an economy experiencing a short money supply: a. High levels of borrowing b. low tax levels c. low interest rates d. high unemployment

high unemployment

which of the following is likely to happen in good economic times: a. increase in available jobs b. increase in unemployment c. decrease in available services d. decrease in goods produced

increase in available jobs

If aggregate demand is rising, businesses and industries will tend to a. cut employee wages b. increase production c. decrease production d. fire employees

increase production

When producers are hopeful about the economic business outlook, they a. increase their investment in savings b. decrease their purchase of new goods c. decrease their inventory levels d. increase their investment in capital goods

increase their investment in capital goods

during periods of economic expansion, businesses are likely to a. reduce their profits b. increase their production c. stop hiring workers d. benefit from high interest rates

increase their production

What action expands economic activities? a. increasing the unemployment rate b. increasing inventory levels c. decreasing the purchase of durable goods d. decreasing investments in capital good

increasing inventory levels

What will probably result if aggregate demand continues to grow, and production cannot meet the demand? a. trough b. decreased production c. depression d. inflation

inflation

Economic activities are open stimulated by something new, such as a new product, strategy, or process, referred to as a(n) a. durable good b. business cycle c. innovation d. exchange

innovation

The totally quantity of money existing in a nation at one time is known as the a. aggregate demand b. gross domestic product c. dividends d. money supply

money supply

An increase in aggregate demand indicates that consumers want or need a. more goods and services b. lower prices c. tax relief d. fewer goods and services

more goods and services

The government can restrict the flow of money by a. increasing purchases b. lowering interest rates c. raising taxes d. increasing employment

raising taxes

Gross Domestic Product that has been adjusted for inflation is known as a. aggregate demand b. GDP per capita c. real GDP d. capital goods

real GDP

The country of Callisto is Experian an economic contraction. Trade an economic activity have decreased, and GDP has fallen over the past six months. Callisto is most likely to be experiencing a(n) a. depression b. peak c. recession d. expansion

recession

When the economy takes a downturn that lasts for six months, a state of ___ is said to exist. a. depression b. inflation c. expansion d. recession

recession

why should a business person understand business cycles? a. to make plans that will help to level out cycles b. to prevent cycles from happening c. to predict the exact beginning and end of cycles d. to determine the cause of each cycle

to make plans that will help to level out cycles

High levels of unemployment and business failures occur during what phase of the business cycle? a. trough b. peak c. contraction d. expansion

trough

The bottom on the business cycle is called a(n) a. peak b. trough c. expansion d. depression

trough

How long do business cycles last? a. two consecutive quarters b. varying lengths of time c. two full years d. at least 10 years

varying lengths of time