Economic Concepts Quiz

What does CPI stand for?

• Consumer Price Index

• Cost Price Index

• Consumer Product Index

• Cost Product Index

What is the term for the highest point in a business cycle?

• Peak

• Trough

• Expansion

• Recession

What is the term for a period of economic decline in a business cycle?

• Recession/Contraction

• Expansion

• Peak

• Bull Market

What is the term for a period of economic growth in a business cycle?

• Expansion

• Recession

• Peak

• Trough

What is another term for a free market economy?

• Free enterprise system

• Controlled market system

• Regulated market system

• Closed market system

What is a financial benefit given by the government to encourage certain activities?

• Subsidy

• Tax credit

• Incentive

• Bull Market

What is the term for the lack of employment?

• Unemployment

• Recession

• Expansion

• Peak

What is the term for a financial motivation to encourage specific actions?

• Incentive

• Subsidy

• Tax credit

• Bull Market

Which of the following is not a phase of the business cycle?

• Inflation

• Peak

• Trough

• Expansion

What is the term for a market characterized by falling prices?

• Bear Market

• Bull Market

• Expansion

• Peak