C) These industries suffer the most. Industries and workers producing heavy capital goods, farm

implements, automobiles, refrigerators, gas ranges, and similar products bear the brunt of

Bad times. Production decreases sharply, so does employment.

5. In what way is recession felt in nondurable consumer goods industries?

A) Output and employment in nondurable consumer goods industries are usually less sensitive

to the cycle. The purchase of “hard goods” is postponable; food and clothing — consumer

Nondurables — are a different story. A family must eat and must clothe itself.

B) They will be in a deep stagnation to the same extent (degree). The amount of purchases will

Decline sharply and the quality of consumer goods will worsen.

C) These industries will be subject to determination of the economic situation, but to a smaller

Degree than durable goods manufacturing industries.

6. What main characteristics of the medium-term cycle should be taken into account in researching

the market situation?

A) The main thing to be determined in the market situation research is the size of investments

in a nation’s economy with all other indicators not being so important.

B) To forecast the market situation it is sufficient to analyze the scope of fluctuations of base

Values, e.g., the industrial production or the volume of foreign trade.