Which of the following is the correct sequence of stages in the business cycle? MCQ with Answer and Explanation

Which of the following is the correct sequence of stages in the business cycle?
A. Peak, Expansion, Trough, Contraction
B. Trough, Peak, Expansion, Contraction
C. Expansion, Peak, Contraction, Trough
D. Contraction, Expansion, Peak, Trough
Answer: Option C
Solution (By JKSSB Mock Tests)
The typical stages of a business cycle are expansion (recovery), peak (boom), contraction (recession) and trough (depression), and then the cycle repeats.

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Practice More Economy Set 1 Questions

Question #1
Which of the following is a feature of the 'Data Economy' or 'Attention Economy'?
A. Only physical goods generate value
B. Data has no economic value
C. Economic value is increasingly derived from the collection, analysis and monetisation of data and user attention
D. Only traditional manufacturing matters

Correct Answer: Option C


Explanation:
In the data and attention economy, the ability to collect, process and monetise large volumes of personal and behavioural data, as well as to capture user attention, has become a central source of economic value.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'Goods and Services Tax' on alcohol for human consumption is:
A. 18%
B. 0%
C. 5%
D. not under GST

Correct Answer: Option D


Explanation:
Alcoholic liquor for human consumption is outside GST.

This question belongs to: Economy GK Economy Set 1
Question #3
The concept of 'Sudden Stop' in international finance refers to:
A. Only a stop in domestic investment
B. An abrupt reversal of capital inflows into a country
C. A gradual reduction in capital flows
D. Only a stop in trade flows

Correct Answer: Option B


Explanation:
A sudden stop is a large and abrupt reversal of capital inflows, often associated with currency crises, output collapses and balance-sheet problems in emerging markets.

This question belongs to: Economy GK Economy Set 1