What is an economic indicator?

An economic indicator is fundamentally a statistic that provides insight into the overall economic health of a country. It encompasses various metrics that help assess aspects such as growth, inflation, employment, and consumer spending. By analyzing these indicators, policymakers, economists, and businesses can make informed decisions regarding economic strategies and policies.

B is correct because economic indicators typically include metrics like Gross Domestic Product (GDP), unemployment rates, and inflation rates, each reflecting the economic conditions and trends of a nation.

In contrast, the other options focus more narrowly on specific measurements or calculations. For instance, while measuring company performance and calculating inflation rates are important, they do not encapsulate the broader economic health of an entire nation. Similarly, surveys of consumer preferences, while providing valuable data for businesses, do not serve as comprehensive indicators of economic health at the national level. Therefore, these options do not accurately fit the definition of an economic indicator as established in economic studies.