Which of the Following Is the Definition of a Leading

question 24

Multiple Choice

Which of the following is the definition of a leading indicator?

• A)It is an informal way of measuring the purchasing power parity between two currencies.
• B)It is a measurement of consumer confidence,which is defined as the degree of optimism about the state of the economy.
• C)It is an economic indicator found by adding the unemployment rate to the inflation rate of an economy.
• D)It is an indicator to measure changes in the price level of consumer goods and services purchased by households.
• E)It is an objective measure that accurately predicts future labor demand.

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Definitions:

Break-Even

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and one has "broken even."

Monthly

Pertaining to or calculated for a period of one month.

Variable Expense

Expenses that fluctuate with changes in production volume or level of activity, similar to variable costs.

Operating Leverage

A measure of how revenue growth translates into growth in operating income.