Which of the Following Is Correct

question 344

Multiple Choice

Which of the following is correct?

• A)Over the business cycle consumption fluctuates more than investment.
• B)Economic fluctuations are easy to predict.
• C)During recessions sales and profits tend to fall.
• D)Because of government policy the U.S. has suffered no recessions in the last 25 years.

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Definitions:

Operating Divisions

Operating divisions are distinct parts of a company that focus on specific areas of operation or markets, often acting semi-independently within the larger organization.

Variable Costs

Costs that change in proportion to the level of output or activity in the production process.

Fixed Costs

Expenses that do not change with the level of production or sales activities, such as rent, salaries, and insurance.

Peak-period Orders

Orders that occur at the highest volume times, often during seasonal or specific heavy demand periods.