Which of the Following Is Not a Criticism Made of Qualitative

question 3

Multiple Choice

Which of the following is not a criticism made of qualitative forecasts?

• A) They become the only possible ones when past data are either not available or are misleading.
• B) They are prone to biases such as optimism and overconfidence.
• C) They do not present any explanation of the mechanism generating the values of a variable of interest,and simply provide a method for projecting historical data.
• D) They provide no guidance on the likely effects of changes in explanatory variables.

---

Definitions:

Economic Basis

The fundamental factors that determine the structure and operation of an economy, such as its resources, technology, and social relations.

Terms Of Trade

The ratio at which a country can trade its exports for imports from other countries, indicating the economic value of goods a country can procure through international trade.

Specializing

The process of focusing on and becoming an expert in a particular subject or skill, often leading to increased efficiency and productivity.

Maximum-Output

The highest level of production that a company can sustain over the long term without increasing its costs per unit of output.