Business CyclesPYQ - May 2019Question 83 of 20
All Questions

Which of the following is not a characteristic of business cycles?

Options

ABusiness cycles have serious consequences on the well-being of the society
BBusiness cycles occur periodically, although they do not exhibit the same regularity
CBusiness cycles have uniform characteristics and causes
DBusiness cycles are contagious and unpredictable
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Correct Answer

✅ Option c — Business cycles have uniform characteristics and causes

All Options:

  • ABusiness cycles have serious consequences on the well-being of the society
  • BBusiness cycles occur periodically, although they do not exhibit the same regularity
  • CBusiness cycles have uniform characteristics and causes
  • DBusiness cycles are contagious and unpredictable

About This Chapter: Business Cycles

Paper

Paper 4: Business Economics

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.

View Official ICAI Syllabus

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 Concepts to Understand

Business Cycle

Fluctuations in economic activity (Expansion, Peak, Contraction, Trough).

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More Questions from Business Cycles

The lowest point in the business cycle is referred to as the:

A leading indicator is:

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?

$During recession, the unemployment rate ________ and output ________.$

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