Question 1

What is the business cycle?

Accepted Answer

A business cycle is also known as a trade cycle.

Answer

A business cycle is a wave-like movement in economic activity where an expansion is followed by a depression.

Answer

A business is an economy-wide phenomenon which prevail in all industries.

Answer

A business cycle is characterized by upwards and downwards movements.

Question 2

How many phases of a business cycle?

Accepted Answer

Four

Answer

Three

Answer

Five

Answer

One

Question 3

Output - Maximum level
Unemployment - Lowest level

Accepted Answer

Peak

Answer

Recession

Answer

Through

Answer

Recovery

Question 4

Output - Minimum level
Unemployment - Highest level

Accepted Answer

Through

Answer

Peak

Answer

Recovery

Answer

Recession

Question 5

Which one is the method of Labor Force Participation Rate?

Accepted Answer

Labor Force / Working-age Population

Answer

Working-age Population X Labor Force

Answer

Working-age Population / Labor Force

Answer

Labor Force X Working-age Population

Question 6

A population divided by?

Accepted Answer

Two

Answer

Seven

Answer

Three

Answer

Six

Question 7

The followings are is the types of unemployment expect:

Accepted Answer

Control Unemployment

Answer

Seasonal Unemployment

Answer

Cyclical Unemployment

Answer

Frictional Unemployment

Question 8

Which of the following is not an impact of unemployment

Accepted Answer

Lowering the discount rate.

Answer

Loss of job skills.

Answer

Effects on the economy.

Answer

Effects on individuals and society.

Question 9

What are the measures to control unemployment?

Accepted Answer

The government can implement any one of or a combination of monetary, fiscal and direct control policies.

Answer

Increase in government expenditure will directly affect aggregate demand.

Answer

The government may practice expansionary fiscal policies through taxation and public expenditure.

Answer

The government may practice expansions monetary policies which increase money supply in the economy.

Question 10

The followings are is direct control measures except:

Accepted Answer

The decrease in taxes.

Answer

Job creation in various sectors of an economy.

Answer

Development of new land.

Answer

Training and technical education.

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