What is meant by the term 'economic indicator'?

The term 'economic indicator' refers to a statistic that helps to illustrate a country's level of economic development and overall economic performance. Examples of economic indicators include Gross National Product (GNP), Gross Domestic Product (GDP), unemployment rates, inflation rates, and balance of trade figures. These indicators are crucial for understanding the economic health of a country, as they provide insights into production, income, investment activity, and consumption patterns.

Understanding economic indicators is essential for evaluating how a country is functioning economically compared to others. They are used by policymakers, economists, and analysts to make informed decisions about economic strategies and to forecast future economic trends. For instance, an increase in GNP typically signifies economic growth, while high unemployment could indicate economic distress.

Other options do not accurately define 'economic indicator':

• The first option talks about cultural practices, which are unrelated to economic metrics.
• The third option concerning environmental sustainability measures does not pertain specifically to economic performance.
• The fourth option about trade routes focuses on geographical trade elements rather than quantifiable economic statistics.

In summary, economic indicators are vital statistics for assessing economic development and performance which align seamlessly with the meaning of term.