Which of the following best defines an economic indicator?

An economic indicator is a statistic that provides information about the economy's state, making it essential for understanding economic performance and trends. These indicators help assess the health of an economy, guide policymakers, and inform individual and business decisions. They can include various data points, such as gross domestic product (GDP), unemployment rates, inflation rates, and consumer spending. By analyzing these indicators, economists and policymakers can gauge whether the economy is growing, stagnating, or contracting, enabling them to make informed decisions regarding fiscal and monetary policies.

In the context of the other choices, while predicting stock market trends may involve statistical data, it does not encompass the broader evaluation of the entire economy. Military strength, although an important aspect of national capability, is not directly related to economic performance. Similarly, measuring the environmental impact of production pertains to sustainability and ecological factors rather than directly assessing overall economic health. Thus, the definition focusing on the economy's state aligns most accurately with what constitutes an economic indicator.