Question 1

Which statement below regarding expansions is true?

a.They happen when GDP reaches its lowest point.

b.They occur when the economy is experiencing GDP growth.

c.They happen when GDP reaches its highest point.

d.They occur during times of high rates of unemployment.

Question 2

Select the statement below that corresponds to the business cycle.

a.Happens between expansions and recessions

b.Shows only the periods of economic decline

c.The process of expansion and contraction of the GDP

d.Happens between recessions and expansions

Question 3

The consumer will bear more of the burden of a tax if demand is which of the following?

a.Perfectly elastic

b.Unit elastic

c.Elastic

d.Inelastic

Question 4

Select the statement that corresponds to a shift in the supply curve.

a.A movement that occurs due to factors such as firms having more or less access to resources

b.The amount of goods and services that may be purchased at a certain moment in time at a specific income level

c.Occurs when the price for a certain good changes and influences the quantity supplied

d.The amount of goods and services that are available at different prices at a certain moment in time

Question 5

Which one of the following is NOT an automatic stabilizer?

a.The TANF program

b.Unemployment insurance

c.Social Security

d.The countercyclical approach