Deck 36: History of Business Cycles and Human Misery

Question 1

Whats defention of terms:
-business cycle

Answer 1

an expansion in economic activity (measured by indicators such as output, employment, and profits) followed by a contraction in economic activity (including declining production, unemployment, business losses, and bankruptcies)

Question 2

Whats defention of terms:
-contraction

Answer 2

downward turn in the business cycle

Question 3

Whats defention of terms:
-expansion

Answer 3

upward turn in the business cycle

Question 4

Whats defention of terms:
-macroeconomics

Question 5

Whats defention of terms:
-microeconomics

Question 6

Whats defention of terms:
-social losses

Question 7

Discuss how and when business cycles began and how business cycles have spread over the whole world.
-What is a business cycle? What is an expansion, and what is a contraction? How are they measured?

Question 8

Discuss how and when business cycles began and how business cycles have spread over the whole world.
-When and where did the modern business cycle begin?

Question 9

Describe the "costs" of recessions and depressions.
-Who loses from recessions and depressions?

Question 10

Describe the "costs" of recessions and depressions.
-What do employees lose?

Question 11

Describe the "costs" of recessions and depressions.
-What do ?corporations lose?

Question 12

Describe the "costs" of recessions and depressions.
-Does the official unemployment rate tell the whole story about how much unemployment exists?

Question 13

Describe the "costs" of recessions and depressions.
-What other points must be considered?

Question 14

Give examples of expansions and recessions throughout history and explain the effects that are common to all recessions.
-Were there recessions or expansions in pre-capitalist societies? Explain.

Question 15

Give examples of expansions and recessions throughout history and explain the effects that are common to all recessions.
-What is the largest recession of the twentieth century? What were some of its most significant effects? How did this recession differ from other recessions that followed?

Question 16

What does the term, "discouraged worker," mean?

A) someone who is unemployed.
B) someone who wants to work but has given up looking for a job.
C) someone who is working part-time but wants to work full-time.
D) someone who does not like his or her job.

Question 17

Pablo was laid off from his job as a computer programmer 6 months ago. He drives a cab on weekends to make ends meet, while he looks for a new permanent job as a programmer.

A) Pablo is unemployed.
B) Pablo is employed.
C) Pablo is a discouraged worker.
D) Pablo is involuntarily unemployed.

Question 18

What's the difference between a recession and a depression?

A) a recession is accompanied by rising prices; a depression by falling prices.
B) a recession is a major expansion in economic activity; a depression is a contraction.
C) a recession is a small downturn in output and employment; a depression is a large downturn.
D) a recession lasts less than 3 quarters; a depression lasts longer than 3 quarters.

Question 19

During the Great Depression, unemployment reached a high of _______ during 1933.

A) 11.2%
B) 25%
C) 41%
D) 4.8%

Question 20

Why is the economic downturn that occurred during the 1930s called the Great Depression?

A) because it was the first recession experienced by the U.S.
B) because it was the last recession experienced by the U.S.
C) because it was the most severe recession ever experienced in the U.S.
D) because it was the shortest depression on record.

Question 21

Business cycles

A) occur in every type of economy.
B) occur only in capitalism.
C) occur in capitalism and feudalism.
D) occur only in socialism

Question 22

What is a business cycle?

A) the length of time a business can sell a product before it becomes obsolete.
B) the length of time it takes a business to take a product from the development stage to the mass market stage.
C) the ups and downs of the economy as measured by GDP growth, employment and profits.
D) the response of the economy to disturbances resulting from outside shocks.

Question 23

What is an "expansion?"

A) an increase in economic activity measured by output, employment and profits.
B) an increase in market share by an oligopoly.
C) foreign investment
D) a new team in professional sports.

Question 24

What is a "contraction?"

A) a downturn in economic activity
B) a loss of market share by a corporation.
C) closing a factory resulting in a major layoff.
D) a credit crunch.

Question 25

During the 20^th century, the US experienced approximately

A) 3 recessions.
B) 9 recessions
C) 20 recessions
D) 74 recessions