Managers often prefer to use business confidence indices____________ .
A) to identify socio-cultural trends
B) as predictors of future economic activity when making business decisions
C) which are based on intuition and experience
D) to encourage customers to make long-term buying decisions
E) to improve consumer confidence forecasts

Question

Quizplus · Accepted Answer

Economic statistics tend to be poor predictors of future business activity. Confidence indexes measure manager sentiment, which may yield a stronger prediction of near-term economic activity.

Managers Often Prefer to Use Business Confidence Indices____________