Question

Seasonal variations are

a.

variations in economic activity that occur regularly each year

b.

variations in economic activity that occur every few years but are not regular or periodic

c.

expansions and contractions in economic activity that occur over long periods of time (50 to 100 years)

d.

irregular variations that don't follow any regular pattern

Answer 1

Answer: a

This is an element of time series which is variable. This variation is almost predictable and repetitive in year after year. Therefore, it becomes regular in each year – a particular time in a year would have this seasonal variation in terms of in terms of production, sales, marketing, etc.

Example: The business (sales) of tours and travels increases in the month of December each year, because final exam of students are over and schools are closed during this period.