Question

Which of the following statements is false with respect to Business Cycles:(a) They occur periodically.(b) They generally originate in free market economies.(c) They are international in character.(d) They do not affect capitalist economies.

Answer 1

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option D is incorrect

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Answer 2

We are provided with some sentences which we have to say that will be false with respect to business cycles.

• The first statement given is true as a business cycle is something that occurs periodically because of the ups and downs of the economy.
• The second sentence that they generally start in free-market economies is also true.
• The third statement is that they are international in character is true because it will affect the international business also.
• The fourth statement is the one that is false as the business cycle will affect the capitalistic economy also.
• An example to check this is the recent shortage of the raw materials for chips and this led to a major shortage of electronic goods produced.

PROJECT CODE: #SPJ3