Which of the Following Is True of a Recession

question 150

Multiple Choice

Which of the following is true of a recession?

• A)It is typically accompanied by inflation and investment growth.
• B)It lasts for more than two years on an average.
• C)It is typically longer than periods of expansion.
• D)It begins after an expansion has peaked.
• E)It continues as long as actual output exceeds the potential output.

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Definitions:

Real Option

A real option refers to the choice or flexibility a company has to make business decisions, such as expanding, deferring, or abandoning a project based on changes in market conditions.

Exploratory Wells

Wells drilled to find and evaluate new oil or gas fields or to explore unproven areas of known fields.

Feasibility Study

An analysis and evaluation of a proposed project to determine if it (1) is technically feasible, (2) is feasible within the estimated cost, and (3) will be profitable.

Drilling Operations

The activities involved in creating boreholes in the earth's surface for the exploration or extraction of resources like oil and gas.