The Business Cycle — Quiz

Question 1

Which of these conditions is most indicative of recovery?

Revolt · Accepted Answer

The economy is growing again.

Question 2

There are four stages in an economic recovery. increased production rising demand (occurs twice) increased hiring In which order do these stages occur?

Revolt · Accepted Answer

2, 1, 3, 2

Question 3

There are five stages in a recession. job loss falling production falling demand (occurs twice) peak production In which order do these stages occur?

Revolt · Accepted Answer

4, 3, 2, 1, 3

Question 4

Which best describes the nature of cause and effect in the context of the business cycle?

Revolt · Accepted Answer

Consumers spend less, causing worker layoffs.

Question 5

Which event most likely explains renewed demand in a recovery period?

Revolt · Accepted Answer

Economic policy renews consumer confidence and demand.

Question 6

Which best describes how a recession develops as demand and production decrease?

Revolt · Accepted Answer

The recession accelerates.

Question 7

When production is very high but demand is very low, it can lead to

Revolt · Accepted Answer

a recession.

Question 8

Which scenario best reflects the relationship between production and demand in a recession?

Revolt · Accepted Answer

Car dealerships cannot sell their stock.

Question 9

Which statement best describes why it is difficult to sell a home during a recession?

Revolt · Accepted Answer

Demand greatly decreases.

Question 10

There are five stages in a recession. job loss falling production falling demand (occurs twice) peak production In which order do these stages occur?

Revolt · Accepted Answer

4, 3, 2, 1, 3

The Business Cycle — Quiz Answers

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