Economic Indicators: Types and Functions

The video tutorial explains the role of GDP as a common economic indicator and introduces three types of economic indicators: lagging, coincident, and leading. Lagging indicators, like GDP, are reported after economic activities occur. Coincident indicators provide real-time data on current economic conditions, while leading indicators help predict future economic trends. The tutorial highlights the importance of these indicators in shaping economic policies and understanding market dynamics.

What is the primary purpose of GDP as an economic indicator?

• To estimate the total level of market production in an economy

• To measure the total population of a country

• To calculate the total exports of a nation

• To determine the literacy rate of a country

Why are lagging indicators like GDP important for economists?

• They measure the total population of a country

• They predict future economic trends

• They provide real-time data on current economic conditions

• They help analyze past economic performance to inform future policies

Which of the following is an example of a lagging indicator?

• Consumer confidence

• Building permits

• Monthly retail sales figures

• GDP

What do coincident indicators provide information about?

• Future economic trends

• Past economic performance

• The total population of a country

• Current economic conditions

Which of the following is a coincident indicator?

• Consumer confidence

• Building permits

• Monthly retail sales figures

• GDP

What is the main function of leading indicators?

• To provide real-time data on current economic conditions

• To analyze past economic performance

• To predict future economic trends

• To measure the total population of a country

Which of the following is considered a leading indicator?

• Consumer confidence

• Unemployment rate

• Monthly retail sales figures

• GDP

How can high consumer confidence affect future economic growth?

• It indicates a potential decrease in GDP

• It suggests increased consumer spending and economic growth

• It results in higher unemployment rates

• It leads to decreased consumer spending

What is a limitation of leading indicators?

• They are always accurate

• They are reported after economic activities have occurred

• They provide real-time data on current economic conditions

• They rely on small sample sizes that may not represent the entire population

Which of the following summarizes the three types of economic indicators?

• Lagging, coincident, and leading indicators

• Primary, secondary, and tertiary indicators

• Economic, social, and political indicators

• Past, present, and future indicators