Sec 9.1
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Questions and Answers

What is the state of the business cycle characterized by rising consumer demand and higher wages?

  • Peak
  • Trough
  • Expansion (correct)
  • Recession
  • Based on declining GDP over two quarters, what would be a leading economic indicator?

  • Consumer Price Index (CPI)
  • Purchasing Managers' Index (PMI) (correct)
  • Retail Sales
  • Unemployment rate
  • If the economy is showing signs of moving into a recession, which company is likely to deliver the best returns?

  • A discount store chain (correct)
  • A luxury goods retailer
  • Real estate developer
  • Technology startup
  • What are profits that are not distributed to shareholders called?

    <p>Retained earnings</p> Signup and view all the answers

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