An example of a highly cyclical industry is _________.
A) the automobile industry
B) the tobacco industry
C) the pharmaceutical industry
D) the utility industry

Question

Quizplus · Accepted Answer

The automobile industry is highly cyclical due to its dependence on consumer spending, which tends to fluctuate with economic cycles. In times of economic growth, consumers are more likely to purchase new cars, while in times of recession, they are more likely to hold onto their existing cars or purchase used cars instead. This creates a cyclical pattern of demand in the industry.

An Example of a Highly Cyclical Industry Is _________