Business Cycles 0 Business Cycles 1 / 30 Q.30 Business that are more vulnerable to charges in business cycle and whose fortunes are closely linked to rate of economic growth are called as ..... Vulnerable Business Cyclical Business Leading Business Lagging Business 2 / 30 Q.30 Business that are more vulnerable to charges in business cycle and whose fortunes are closely linked to rate of economic growth are called as ..... Vulnerable Business Cyclical Business Leading Business Lagging Business 3 / 30 Q.29 Internal causes of depression includes Fluctual in investments Money supply Psychological factors All of these 4 / 30 Q.28 Which of the following macro economic variables would you include in an index of leading economic indicators? Employment Inflation Real interest rates Presidential investment 5 / 30 Q.27 Industries that are extremely sensitive to the business cycle are the Durable goods and service sectors. Non-durable goods and service sectors. Capital goods and non-durable goods sectors. Capital goods and durable goods sectors. 6 / 30 Q.26 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 7 / 30 Q.25 Which of the following statements is true? An Economy grows endlessly An Economy Contracts endlessly It is easy to predict turning points of Business Cycle None of the above 8 / 30 Q.24 Even with lower rate of interest, demand for credit declines in Expansion Phase Peak Contraction Phase Depression 9 / 30 Q.23 When does an economic expansion occur in the business cycle? At the peak of the business cycle At the trough of the business cycle Between the peak and trough Between the trough and peak 10 / 30 Q.22 Economic recession is characterized by all of the following except _____ Decline in investments, employment Increase in the price of inputs due to increased demand for inputs Investors confidence is shaken Demand for goods, services decline 11 / 30 Q.21 Production of _____ goods fall during the war times. arms and ammunition non-durable and capital capital and weapons capital and consumer 12 / 30 Q.20 Coincident Indicator is also known as : Concurrent Indicator Lagging Indicator Leading Indicator None of the above 13 / 30 Q.19 Excess capacity in capital industries leads to Peak Trough Expansion Recovery 14 / 30 Q.18 What of the following are not external causes ? Past war reconstruction Population growth Technology factors Fluctuation in effective demand 15 / 30 Q.17 In which stage maximum production occurs. Peak Expansion Boom or Expansion Tough or boom 16 / 30 Q.16 Which internal factor affect the Business cycle? Fluctuations in investment Natural factors Technology shocks Population growth 17 / 30 Q.15 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. 18 / 30 Q.14 During recession, the unemployment rate ______ and output _______. Rises; falls Rises; rises Falls; rises Falls; falls 19 / 30 Q.13 A significant decline in general economic activity extending over a period of time is business cycle contraction phase recession recovery 20 / 30 Q.12 The end of expansion is termed as - Peak Contraction Trough None of the above 21 / 30 Q.11 During war times most of the productive resources are diverted for the production of _____ capital goods consumer goods weapons and arms service 22 / 30 Q.10 At the time of Great Depression of 1930s, the global GDP fell by around _____ 12% 14% 15% 10% 23 / 30 Q.9 Fall in the interest rates is a typical feature of _____. recovery boom depression contraction 24 / 30 Q.8 There is large scale of involuntary unemployment in the _____ phase of business cycle. expansion peak contraction none of the above 25 / 30 Q.7 Which one of the following is not the characteristic of business cycle? They are recurrent They are not at regular intervals They have uniform causes All the above 26 / 30 Q.6 In a typical business cycle, in which phase supply exceeds demand ? Expansion Peak Contraction Recovery 27 / 30 Q.5 Variables that change after real output changes are known as : Leading indicators Cyclical indicators Lagging indicators Coincident indicators 28 / 30 Q.4 Which of the following is not an example of coincident indicator? Industrial production inflation Retail sales New orders for plant and equipment 29 / 30 Q.3 Which one of the following is an example of lagging indicator? personal income new orders for plant and equipment the consumer price index slower deliveries 30 / 30 Q.2 A variable that occur simultaneously with the business cycle movements is _____ indicator. Leading Lagging Coincident Cyclical Your score is LinkedIn Facebook Twitter VKontakte