Multiple choice

Recession

Directions: Some words in the news item below have been highlighted. Select the best contextual meaning of the related words.

The prolonged recession in the automotive market is threatening to have a long-term implication on the automotive industry’s ambitious target of achieving a turnover of \$145 billion by 2016 under the Automotive Mission Plan.
Revising its sales target for FY-13 downwards to 1-3% from 9-11% earlier, the automotive industry body Society of Automobile Manufacturers Association (SIAM) on Wednesday said, that the target of \$145 billion may be missed by 20-25% at the current growth rate levels. “if this current trend continues, then we will miss the AMP target of accomplishing an annual turnover of USD 145 billion from auto and auto-component manufacturers by 2016,” said SIAM president S Sandilya.

  1. Price rise

  2. Break

  3. Slowdown

  4. Strike
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In economics and business contexts, a recession refers to a period of temporary economic decline or slowdown in trade and industrial activity. The passage describes how the automotive market is experiencing a prolonged period of reduced activity, which 'slowdown' accurately captures. Options like 'price rise' or 'strike' don't fit the economic meaning of recession.

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