Pages 30-31

Question 3. The concept of "consumer confidence" is important in the study of economics and political science, among other disciplines.

a) Go to https://news.google.comLinks to an external site. and search for "consumer confidence" (use quotation marks). Pick a recent news article on consumer confidence. Put a link to the article in your response. How well, if at all, does the article define consumer confidence, or how is it measured?

b) From what you know, offer a conceptual definition of consumer confidence.

c) Read the information on page 31 regarding the consumer confidence survey item. What are the potential strengths and weaknesses of this survey question as one component of consumer confidence?

d) Examine the five survey items for the Michigan Index of Consumer Sentiment at https://data.sca.isr.umich.edu/fetchdoc.php?docid=24770Links to an external site..

How are the five items similar to one another and how are they different from one another?

e) The complete monthly survey can be found here: https://data.sca.isr.umich.edu/fetchdoc.php?docid=24776Links to an external site.. You will note that the survey does not any questions to measure a respondent's political beliefs or affiliations. Why do you think this is the case?

f) Can you think of any additional survey questions that might complement or replace the ones in the Michigan Index?