CAF-7 · Chapter 1 · Question 15 of 15
A country is experiencing a 'boom' phase in its economic cycle. Which of the following business conditions is a company most likely to experience during this period?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) High capacity utilization, rising sales, and potential skills shortages
Explanation
During an economic boom (peak), consumer demand is high. Businesses operate at full capacity and experience rising sales. However, because unemployment is very low, they often struggle to find skilled labor, leading to skills shortages.
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