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PBM Module 2 Test: Economic Activity

Quiz by Pa'Trice Day Owens

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20 questions
Show answers
  • Q1
    Productivity would likely increase as a result of
    decreased training programs
    Expanded production technology
    none of the answers
    high taxes
    60s
  • Q2
    The phase of the business cycle in which unemployment is the highest is
    expansion
    depression/recessison
    recovery
    peak
    60s
  • Q3
    Deflation results in lower buying power of money.
    true
    false
    60s
  • Q4
    When consumers increase their borrowing, interest tends to decline
    true
    false
    60s
  • Q5
    Lower spending would most likely cause a budget surplus for the government.
    false
    true
    60s
  • Q6
    In the early 2000's the United States experiences a DEPRESSION in the economy.
    false
    true
    60s
  • Q7
    Which of these is a capital project?
    You buid a house for your family
    Your employer cancels the health insurance benefit
    You decide not to buy a car
    An excavating company purchases a new backhoe
    60s
  • Q8
    The total amount owed by the federal government is called the National debt
    true
    false
    60s
  • Q9
    A period in which unemployment is low, businesses produce many goods and services and wages are good.
    Prosperity
    recovery
    a boom
    free market
    60s
  • Q10
    If you deposit $1000 in a savings account, what is the bank going to do with your money?
    shred the money
    none of the answers
    use it to make loan to others at a higher interest rate and pay you interest
    use it to make loan to others at a higher interest rate
    60s
  • Q11
    The more goods and services that are produced the healthier the economy.
    true
    false
    60s
  • Q12
    All of the following are goods with the exception of
    car
    house
    car repair
    medicine
    60s
  • Q13
    Layoffs and a downturn in the economy would likely result in a
    neither
    depression
    both
    recession
    60s
  • Q14
    The unemployment rate would most likely be at it's lowest during the ____________ phase.
    recovery
    neither
    prosperity
    60s
  • Q15
    Inflation is caused by an increase in demand without an increase in supply
    true
    false
    60s

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