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problem 1: The forecasting method which attempts to forecast short-run changes and makes use of the economic indicators termed as leading, coincident or lagging indicators is termed as:

a) econometric method

b) time-series forecasting

c) opinion polling

d) barometric method

e) judgment forecasting

problem 2: If two alternative economic models are offered, other things equavalent, we would:

a) tend to pick the one with the lowest R2.

b) Choose the model which is the most expensive to estimate.

c) pick the model that was the most complex.

d) Choose the model which gave the most accurate forecasts

problem 3: The variation in an economic time-series which is caused by main expansions or contractions generally of greater than a year in duration is termed as:

a) secular trend

b) cyclical variation

c) seasonal effect

d) unpredictable random factor

problem 4: Consumer expenditure plans is an illustration of a forecasting method. Which of the general categories best describeed this illustration?

a) time-series forecasting methods

b) barometric methods

c) survey methods and opinion polling

d) econometric methods

e) input-output analysis

problem 5: The kind of economic indicator which can best be used for business forecasting is the:

a) leading indicator

b) coincident indicator

c) lagging indicator

d) current business inventory indicator

e) optimism/pessimism indicator

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