MENU
Rising economic activity is most likely to increase revenues of which of the following sectors?
Suggested Answer: D
Get Premium SIE Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
Step by Step Explanation:
Consumer Discretionary Sector: Includes products and services that are not essential, such as luxury items, travel, and entertainment. Revenues increase as disposable income rises during economic expansion.
Consumer Staples and Utilities: These sectors are defensive and less impacted by economic cycles.
Healthcare: Also less correlated with economic cycles due to its essential nature.
SEC and FINRA Guidance on Sectors: Investopedia Sector Overview.
25 comments · newest first
LO
Lonna
10 months ago
Definitely consumer discretionary! People spend more when they feel good about the economy.
HO
Honey
10 months ago
Really? I’m not so sure about that. Utilities seem more stable.
EL
Elly
10 months ago
I think healthcare will see a boost too, especially with aging populations.
AL
Alpha
11 months ago
Consumer discretionary is usually the winner in a booming economy!
TI
Timothy
11 months ago
Surprised that utilities are even in the mix here. They’re pretty steady regardless of the economy.
CH
Charlene
11 months ago
I think healthcare is pretty essential, so I'm not sure if it would see a significant increase in revenue just from rising economic activity.
SH
Sharika
12 months ago
I practiced a similar question where consumer staples were mentioned, but I feel like they don't really get a boost from economic growth like consumer discretionary does.
LI
Ligia
12 months ago
I'm not entirely sure, but I think utilities might be more stable regardless of economic conditions.
ER
Erick
1 year ago
I remember discussing how consumer discretionary tends to benefit from rising economic activity since people have more disposable income.
NO
Noemi
1 year ago
This is a tricky one. I'm leaning towards consumer discretionary, since that sector is often more sensitive to changes in the economy, but I'm not 100% sure.
BU
Buffy
1 year ago
Utilities and consumer staples seem like the most obvious choices, but I'm not totally confident. I'll have to weigh the pros and cons of each option.
RE
Rebecka
1 year ago
I've got a good feeling about this one. Utilities, healthcare, and consumer staples all seem like they could benefit from rising economic activity.
FA
Farrah
1 year ago
Hmm, not sure about this one. I'll have to think it through step-by-step to figure out the right answer.
MI
Mirta
1 year ago
This seems like a straightforward question about how different sectors are impacted by economic activity. I'll think through the options carefully.
TA
Tawna
1 year ago
I think rising economic activity would benefit Consumer discretionary.
IL
Ilda
1 year ago
Hmm, I'm not so sure. I'm leaning towards C. Consumer staples. Even in good times, people still need to buy basic necessities like food and toiletries.
DA
Darci
10 months ago
I still think C is solid. Basic needs won't change, even if people splurge a bit.
BE
Beata
10 months ago
I agree with Lorenza. Consumer discretionary often sees a boost during economic upturns.
KI
Kimberlie
11 months ago
True, but A could also benefit. Utilities are essential, and demand stays steady.
LO
Lorenza
11 months ago
I see your point, but I think D might be stronger. People spend more on non-essentials when the economy is good.
AL
Aleshia
1 year ago
Option B, Healthcare, seems like a good choice. People tend to spend more on healthcare during economic booms.
EL
Elvera
1 year ago
I think the answer is D. Consumer discretionary. Rising economic activity usually boosts consumer spending on non-essential goods and services.
NE
Nenita
1 year ago
Utilities may not see as much of an increase in revenues compared to consumer discretionary or healthcare.
SH
Sharee
1 year ago
I think healthcare might also see a boost in revenues with rising economic activity.
SH
Shelton
1 year ago
I agree, consumer discretionary is likely to benefit from increased economic activity.