Business Cycles
20 Practice MCQs available for CA Foundation
Paper
Paper 4: Business Economics
Exam Weightage
5%
Key Topics
Phases, Features, Causes
Business Cycles describe the recurring fluctuations in economic activity — Expansion, Peak, Recession, and Trough. This chapter covers the phases, features, and causes of business cycles, along with theories explaining why economies go through regular boom-bust patterns.
Exam Strategy Tip
This is a lower-weightage chapter but easy to score. Focus on memorizing the four phases and their characteristics. Questions are usually straightforward.
Key Terms
Consignment
A specialized business arrangement where one person (Consignor) sends goods to another person (Consignee) to be sold on their behalf.
Limited Liability Partnership (LLP)
A corporate business vehicle that provides the benefits of limited liability while allowing its members the flexibility of organizing their internal structure as a partnership.
Business Cycle
Fluctuations in economic activity (Expansion, Peak, Contraction, Trough).
Comparison Tables
All 20 Questions
The lowest point in the business cycle is referred to as the:
A leading indicator is:
Which of the following is not a characteristic of business cycles?
Economic recession shares all of these characteristics except:
The different phases of a business cycle:
Which of the following is not an example of coincident indicator?
$During recession, the unemployment rate ________ and output ________.$
The four phases of the business cycle are:
China’s recent slowdown can be termed as:
Fashion retailers are more sensitive to business cycles than:
In which phase of the trade cycle do the prices of factors of production increase?
Features of Business Cycles include:
Which indicator changes after the economy has changed?
The most probable outcome of an increase in the money supply is:
According to trade cycle is a purely monetary phenomenon.
Changes in housing interest rates are a:
Which one is an external cause of business cycles?
Great Depression occurred in:
Schumpeter attributed business cycles to:
During expansion phase, employment:
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