Home › CA Foundation › Business Economics › Business Cycles › Which statement is NOT a common feature of busin…
Which statement is NOT a common feature of business cycles as listed in the chapter?
AThey occur periodically but not with the same regularity
BThey have uniform characteristics and a single cause
CThey generally originate in free market economies
DThey are contagious and international in character
Answer & Solution
Correct answer: B. They have uniform characteristics and a single cause
1. The chapter lists features: periodic but irregular, free-market origin, pervasive, contagious and international.
2. It explicitly says cycles are complex, do NOT have uniform characteristics and causes, and are caused by varying factors.
3. So the statement that is NOT a feature is the claim of uniform characteristics and a single cause.
4. The periodicity, free-market origin, and contagious/international statements are all stated features.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 5 "Business Cycles", p.6_
Related questions
Which of the following did monetarist economists blame for the Great Depression of the 193Businesses whose fortunes are closely tied to the rate of economic growth, such as house-bAnti-inflationary macroeconomic measures such as cutting government spending and raising tHow does the chapter say population growth running faster than economic growth tends to afWhich of the following is classified in the chapter as an EXTERNAL (exogenous) cause of buPigou explained business fluctuations chiefly in terms of:The innovation theory, which holds that trade cycles arise from innovations introduced intThe view that the trade cycle is a purely monetary phenomenon driven by unplanned changes