An example of a highly cyclical industry is
A) the automobile industry.
B) the tobacco industry.
C) the food industry.
D) the automobile industry and the tobacco industry.
E) the tobacco industry and the food industry.

Question

Quizplus · Accepted Answer

The automobile industry is highly cyclical because its sales and profits are closely linked to the overall economic cycle. During economic downturns, consumers are less likely to make large purchases such as cars, leading to decreased demand in the automobile industry. Conversely, the tobacco and food industries are considered more stable and less sensitive to economic cycles, as they provide essential goods that people continue to purchase regardless of the economic environment.

An Example of a Highly Cyclical Industry Is