LOS m: Compare and contrast the major approaches to economic forecasting.

Q1. Which of the following is NOT a characteristic of econometrics as used in economic forecasting? Econometrics:

A)   provides a straightforward method of creating a model.

B)   can provide precise quantitative forecasts of economic conditions.

C)   is better at forecasting expansions than recessions.

Q2. Which of the following is NOT a characteristic of economic indicators as used in economic forecasting? Economic indicators:

A)   can be adapted for specific purposes.

B)   are difficult to understand and interpret.

C)   have an effectiveness that has been verified by academic research.

Q3. Which of the following is NOT a characteristic of a checklist approach as used in economic forecasting? A checklist approach:

A)   may not be able to model complex relationships.

B)   does not allow for changes in the model over time.

C)   requires subjective judgment.

LOS m: Compare and contrast the major approaches to economic forecasting. fficeffice" />

Q1. Which of the following is NOT a characteristic of econometrics as used in economic forecasting? Econometrics:

A)   provides a straightforward method of creating a model.

B)   can provide precise quantitative forecasts of economic conditions.

C)   is better at forecasting expansions than recessions.

Correct answer is A)

Econometric analysis can actually be difficult and time intensive to create.

Q2. Which of the following is NOT a characteristic of economic indicators as used in economic forecasting? Economic indicators:

A)   can be adapted for specific purposes.

B)   are difficult to understand and interpret.

C)   have an effectiveness that has been verified by academic research.

Correct answer is B)         

Economic indicators are actually easy to understand and interpret.

Q3. Which of the following is NOT a characteristic of a checklist approach as used in economic forecasting? A checklist approach:

A)   may not be able to model complex relationships.

B)   does not allow for changes in the model over time.

C)   requires subjective judgment.

Correct answer is B)         

A checklist approach actually allows for changes in the model over time.

Thanks.

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