Which of the Following Variables Are Included in the Index

question 163

Multiple Choice

Which of the following variables are included in the index of leading indicators?

• A) new orders placed with manufacturers, length of average workweek, permits for new housing starts
• B) changes in the M1 money supply, number of new credit cards, political stance of current politicians
• C) average worker salary, average number of children per family, current standard of living
• D) labor-force participation rate, household debt as a share of disposable income, the real interest rate

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Definitions:

Variable Costs

Expenses that change in proportion to the level of production or sales activity.

Composite Units

A measure used in accounting to bundle goods or services together for the purposes of inventory management, costing, or sales analysis.

Fixed Costs

Costs that remain constant regardless of a business's operational levels, like lease payments, wages, and coverage fees.

Break-Even Point

The point at which total costs and total sales are equal, resulting in no net loss or gain for the business.