The Business Cycle Is So Named Because Upswings and Downswings

question 236

True/False

The business cycle is so named because upswings and downswings in business activity are
predictably equal in terms of duration and intensity.

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Definitions:

Marginal Revenue

The additional income from selling one more unit of a good or service.

Marginal Cost

The hike in overall costs when one extra unit of a product or service is produced.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, representing surplus remaining after all costs have been paid.

Entry Barriers

Obstacles that prevent or hinder new competitors from easily entering an industry or area of business.