Practice Test


Q1) The term business cycle refers to- Show Answer


Q2) . Expansion phase all but one of the following characteristics. Show Answer


Q3) Which one of the following is not the characteristic of business cycle? Show Answer


Q4) The turning points of the business cycle are Show Answer


Q5) . _____ refers to the top or the highest point of business cycle. Show Answer


Q6) Involuntary unemployment is almost zero in the _____ phase of business cycle. Show Answer


Q7) The economy is said to be overheated at the _____ phase of business cycle. Show Answer


Q8) There is large scale of involuntary unemployment in the _____ phase of business cycle. Show Answer


Q9) Fall in the level of investments, fall in production,fall in employment, fall stock prices, etc. are found during _____ phase of business cycle. Show Answer


Q10) All but one are the endogenous factors of business cycle Show Answer


Q11) ._____is the severe form of recession withlowest level of economic activity. Show Answer


Q12) Fall in the interest rates is a typical feature of _____. Show Answer


Q13) During depression _____ industry suffer from excess production capacity. Show Answer


Q14) The great depression of _____ caused enormous misery and human sufferings Show Answer


Q15) The lowest level of economic activity is called _____ Show Answer


Q16) There is end of pessimism and the beginning of optimism at _____ Show Answer


Q17) Which of the following is not the features of business cycle? Show Answer


Q18) The trough of a business cycle occur when _____ hits its lowest point. Show Answer


Q19) Industries that are most adversely affected by business cycles are the _____ Show Answer


Q20) . _____ indicators change before the economy itself changes. Show Answer


Q21) _____ indicators change after the economy as a whole changes. Show Answer


Q22) Changes in stock prices, profit margins and profits, manufacturing activity, etc. are examples of _____ indicator. Show Answer


Q23) A variable that moves later than aggregate economic activity is called _____ Show Answer


Q24) While _____ indicators forecast economic
fluctuation, _____indicators confirm the trends. Show Answer


Q25) A variable that occur simultaneously with the business cycle movements is _____ indicator. Show Answer


Q26) Coincident indicators show _____ Show Answer


Q27) At the time of Great Depression of 1930s, the global GDP fell by around _____ Show Answer


Q28) Which one of the following is not correct about business cycle? Show Answer


Q29) Which of the following describes best a typical trade cycle? Show Answer


Q30) Cost of living increases when business cycle is ---------- Show Answer


Q31) During upswing, the unemployment rate _____ and output _____ Show Answer


Q32) . Which of the following does not occur during expansion phase? Show Answer


Q33) When aggregate economic activity is declining,the economy is said to be in _____ Show Answer


Q34) Which one of the following is not an example of coincident indicator? Show Answer


Q35) Which one of the following is an example of lagging indicator? Show Answer


Q36) ._____ is of the view that fluctuations in economic activities are because of fluctuations in aggregate effect demand. Show Answer


Q37) High rate of investment brings _____ Show Answer


Q38) If any unemployment exists during expansion phase of business cycle, it is _____ unemployment. Show Answer


Q39) The most probable outcome of increase in aggregate demand is _____ Show Answer


Q40) According to _____, a trade cycles is a purely monetary phenomena Show Answer


Q41) Optimistic and pessimistic mood of the business community also affects the economic activities is the view of _____ Show Answer


Q42) According to _____ trade cycles occur due to onset of innovations Show Answer


Q43) Business cycles appear due to present fluctuations in prices affecting the output and employment in future is _____ Show Answer


Q44) Production of _____ goods fall during the war times. Show Answer


Q45) During war times most of the productive resources are diverted for the production of _____ Show Answer


Q46) Economic recession is characterized by all of the following except _____ Show Answer


Q47) Production of new and better goods and services using new technology results in _____ Show Answer


Q48) Understanding the business cycle is important for business managers because _____ Show Answer


Q49) Businesses whose fortunes are closely linked to the rate of economic growth called _____ Show Answer


Q50) If the population growth rate is higher than the economic growth rate it will result in _____ Show Answer


Q51) The term business cycle refers to Show Answer


Q52) When does an economic expansion occur in the business cycle? Show Answer


Q53) Increasing Prosperity and High standards of living are the characteristics of Show Answer


Q54) The end of expansion is termed as - Show Answer


Q55) The beginning of recession is Show Answer


Q56) A significant decline in general economic activity extending over a period of time is Show Answer


Q57) Severe form of recession is Show Answer


Q58) The trough of a business cycle occurs when _____ hits its lowest point. Show Answer


Q59) The lowest point in the business cycle is referred to as the Show Answer


Q60) Even with lower rate of interest, demand for credit declines in Show Answer


Q61) Which of the following statements is true? Show Answer


Q62) Which of the following statement is not correct? Show Answer


Q63) A leading indicator is Show Answer


Q64) A variable that tends to move later than aggregate economic activity is called Show Answer


Q65) Changes in housing interest rate is a Show Answer


Q66) Unemployment is a Show Answer


Q67) GDP is a Show Answer


Q68) Industries that are extremely sensitive to the business cycle are the Show Answer


Q69) A decrease in government spending would cause Show Answer


Q70) Which of the following does not occur during an expansion? Show Answer


Q71) Which of the following best describes a typical business cycle? Show Answer


Q72) During recession, the unemployment rate ______ and output _______. Show Answer


Q73) The four phases of the business cycle are Show Answer


Q74) Leading economic indicators Show Answer


Q75) When aggregate economic activity is declining, the economy is said to be in Show Answer


Q76) Peaks and troughs of the business cycle are known collectively as Show Answer


Q77) The most probable outcome of an increase in the money supply is Show Answer


Q78) Which of the following is not a characteristic of business cycles Show Answer


Q79) Economic recession shares all of these characteristics except. Show Answer


Q80) The different phases of a business cycle Show Answer


Q81) Which of the following is not an example of coincident indicator? Show Answer


Q82) According to _______ trade cycles occur due to onset of innovations. Show Answer


Q83) According to Keynes, Fluctuations in economic activity are due to fluctuations in Show Answer


Q84) What is the cause for rise in investments? Show Answer


Q85) Internal Cause for Business Cycle include Show Answer


Q86) Rampant unemployment is found in: Show Answer


Q87) Last stage of recession is called: Show Answer


Q88) In the long run, a reduction in labour supply would cause output to ............ and the aggregate price level to ............ Show Answer


Q89) Which of the following macro economic variables would you include in an index of leading economic indicators? Show Answer


Q90) The world economy suffered the longest, deepest and most widespread depression of the 20th century during? Show Answer


Q91) Business cycle is contagious and ______ in character? Show Answer


Q92) Which External Factor affect the business cycle? Show Answer


Q93) Which internal factor affect the Business cycle? Show Answer


Q94) Whose statement out of these is false? Show Answer


Q95) When once peak is reached, increase in demand is salted, then ................. phase begins? Show Answer


Q96) Fashion Retailer is business of? Show Answer


Q97) Features of business cycles include? Show Answer


Q98) Internal causes of depression includes Show Answer


Q99) External factors for depression does not include: Show Answer


Q100) ............. is the measurable economic factor that changes before economy starts to follow a particular pattern or trend: Show Answer


Q101) The Rhythmic fluctuations in aggregate economic activity over a period of time are called: Show Answer


Q102) During recession output: Show Answer


Q103) Business cycles generally originate in: Show Answer


Q104) During the slow down of economy, Show Answer


Q105) The economic boom is characterised as period when: Show Answer


Q106) Which macro economic variables are excluded from leading economic indicators: Show Answer


Q107) Economics activities will be declining in the phase of .... Show Answer


Q108) Business Cycle occurs Show Answer


Q109) According to some economists, ..... are the prime causes of business cycles.
Show Answer


Q110) Which is not related to great depression of 1930 ? Show Answer


Q111) Which of the following is not the phase of business cycles ? Show Answer


Q112) Boom and depression in business cycle are Show Answer


Q113) Which is not the characteristic feature of expansion phase in business cycle ? Show Answer


Q114) "Modern business activities are based on the anticipations of business community and are affected by waves of optimism or pessimism" according to ...... Show Answer


Q115) Find the odd man out :
Which of these is not a coincident factor ? Show Answer


Q116) Excess capacity in capital industries leads to Show Answer


Q117) Here, growth moves in reverse direction Show Answer


Q118) Frictional unemployment exists in Show Answer


Q119) In which stage maximum production occurs. Show Answer


Q120) Unemployment is caused due to structural changes is known as ? Show Answer


Q121) Al trough production is ? Show Answer


Q122) Stae at which actual demand is stragnated ? Show Answer


Q123) A change of reaction producer cancel their order in which, stage ? Show Answer


Q124) Which of the following is true : Show Answer


Q125) China's recent slowdown caused Show Answer


Q126) What of the following are not external causes ? Show Answer


Q127) Modern business activities are based on the anticipations of business community and are affected by waves of optimism (or) Pessimism is said by : Show Answer


Q128) Which of the following phase occurs after threat and before peak ? Show Answer


Q129) Which indicators coincide as occur simultaneously with the business cycle movements ? Show Answer


Q130) What is the most visible sign of recession in an economy ? Show Answer


Q131) Taxation policy of government is the past of : Show Answer


Q132) During the phase of tough of business cycle, the growth rate become : Show Answer


Q133) Which of the following is an internal cause of business cycles ? Show Answer


Q134) During the phase .... there is fall in level of investment and employment. Show Answer


Q135) The most important feature of business cycle is : Show Answer


Q136) Feature of .... is fall in interest rates and people's demand for holding liquid money. Show Answer


Q137) Business that are more vulnerable to charges in business cycle and whose fortunes are closely linked to rate of economic growth are called as ..... Show Answer


Q138) According to law trey, which of the following is correct ? Show Answer


Q139) Coincident indicators are also known as .... Show Answer


Q140) Business cycle is contagious and .... in character ? Show Answer


Q141) The world economy suffered the congest deepest and most widespread depression of the 20th century during : Show Answer


Q142) Variable that change before the real output change are called as : Show Answer


Q143) Variables that change after real output changes are known as : Show Answer


Q144) In which of the following phase of a business cycle, actual demand stagnates ? Show Answer


Q145) In a typical business cycle, in which phase supply exceeds demand ? Show Answer


Q146) The rhythmic Fluctuations in aggregate economic activity that an economy experiences over a period of time is called : Show Answer


Q147) Which phase of business cycle is characterised by increase in national output, employment, aggregate demand, capital and consumer expenditure sales, profits etc. ? Show Answer


Q148) Coincident economic indicators are also known as : Show Answer


Q149) Which of the following is not a feature of business cycle ? Show Answer


Q150) Excess capacity in capital industries leads to Show Answer


Q151) According to whom "Business Fluctuation are the outcome of some Psychological states of mind of business community" ? Show Answer


Q152) __ is when economic activity is increasing ? Show Answer


Q153) According to which economist, trade cycle is a purely monetary phenomenon
Show Answer


Q154) __ is a measurable economic factor that changes at the same time when economy starts to follow a particular pattern of trend. Show Answer


Q155) According to ___ fluctuations in economic activities are due to fluctuations in aggregated effective demand. Show Answer


Q156) ___ phase is categorized by increase in national output, employment, aggregate demand, capital & consumer expenditure.
Show Answer


Q157) In India, Monetary policy is implemented by ___.
Show Answer


Q158) Highest point of business cycle is known as ___.
Show Answer


Q159) Which of the following is the characteristic of business cycle ?
Show Answer


Q160) Economic indicator required to predict in the turning point of business cycle is : Show Answer


Q161) Involuntary unemployment is zero in :
Show Answer


Q162) Actual Demand Stagnates in :

Show Answer


Q163) Typical feature of depression is ___ in the interest rate : Show Answer


Q164) Indicator which changes after the real output changes ?
Show Answer


Q165) Coincident Indicator is also known as : Show Answer


Q166) What is leading indicator in the following ?
Show Answer


Q167) ___ sector can not be a cyclical business.
Show Answer


Q168) Which of the following is correct ?
Show Answer


Q169) The lowest point in the business cycle is referred to as - Show Answer


Q170) Which of the following is not the main feature of business cycle ? Show Answer