Features of Business Cycles include:
Options
APeriodicity
BAll pervading
CInternational in character
DAll of the above
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Business CyclesPYQ - June 2023Question 92 of 20
All Questions Correct Answer
✅ Option d — All of the above
All Options:
- APeriodicity
- BAll pervading
- CInternational in character
- DAll of the above
Detailed Solution & Explanation
To understand the features of business cycles, we need to break down the concept into its key characteristics.
• Business cycles refer to the fluctuations in economic activity that occur over time, typically involving periods of expansion and contraction.
• One of the primary features of business cycles is their periodic nature, meaning they occur at regular intervals, which is referred to as periodicity.
• Another important aspect is that business cycles are all-pervading, affecting various sectors of the economy, such as production, employment, and income.
• Additionally, business cycles are international in character, meaning they can impact multiple countries and economies, often due to global trade and economic interdependence.
The correct answer includes all these features, making it a comprehensive description of business cycles.
Options that only mention one or two of these characteristics, such as periodicity or international character, are incomplete and therefore incorrect.
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 SyllabusExam 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
Related Comparison Tables
More Questions from Business Cycles
The lowest point in the business cycle is referred to as the:
Which of the following is not an example of coincident indicator?
Which one is an external cause of business cycles?
During expansion phase, employment:
Economic recession shares all of these characteristics except:
The four phases of the business cycle are:
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