Final answer:
An economic series relevant to sales projection for an automobile manufacturer includes consumer confidence indices, disposable income levels, and interest rates. These factors reflect the economy's health and consumers' financial state, affecting their ability to purchase vehicles and the manufacturer's investment decisions.
Step-by-step explanation:
When selecting a company outside the retail drugstore industry to make sales projections, an appropriate choice could be an automobile manufacturer. Economic series that are relevant for sales projection in this context might include consumer confidence indices, disposable income levels, and interest rates. These series are significant because consumer confidence reflects the public's perception of the economy and their readiness to make significant purchases, like cars. Disposable income levels dictate the buying power of consumers, influencing their ability to spend on big-ticket items. Moreover, interest rates affect the cost of financing for both the manufacturer and the consumer, thereby impacting demand and the company's decision to invest in new projects, similar to what is demonstrated by the Dprivate and Dsocial curves in the research and development scenario of the Big Drug Company.
Understanding the balance between Dprivate and Dsocial is crucial when assessing investment in research and development. Dprivate corresponds to a firm's internal demand for financial capital, while Dsocial accounts for the broader economic impact, including spillover benefits to society. By analyzing these factors as they relate to demand and supply, businesses can make strategic decisions about where to allocate resources for the greatest return on investment.