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The chapter notes that business cycles do not affect all sectors uniformly. Which sectors does it identify as disproportionately affected?
AAgriculture and primary mining sectors
BPublic administration and defence services
CCapital goods and durable consumer goods industries
DNon-durable goods and basic food sectors
Answer & Solution
Correct answer: C. Capital goods and durable consumer goods industries
1. The chapter says all sectors are affected, but some are disproportionately hit.
2. It names capital goods industries and durable consumer goods industries.
3. It also notes the industrial sector is more prone than agriculture.
4. So the correct choice is capital and durable consumer goods industries.
5. Agriculture is ruled out as comparatively less affected.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 5 "Business Cycles", p.6_
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