Question

Which of the following would be an economic indicator used by economists primarily to track consumer demand in the marketplace?

a) Statistics on household composition

b) Statistics on vacancy rates

c) Retail sales statistics

d) Statistics on capital investments

Explanation for the correct must be provided

Answer 1

Solution: Statistics on vacancy rates

Explanation: The economic factors that mainly affect the consumer's demand for goods are employment, interest rates, wages, prices/inflation, and consumer confidence. The statistics on vacancy rates would provide information on steady income. When the wages are increasing steadily, consumers usually have more discretionary income to spend. When the wages are falling or stagnant, consumer's demand for goods is likely to fall.