Along with the drop in producer prices announced yesterday, the strong retail sales figures released today seem like it is indicative that the economy, although growing slowly, is not nearing a recession.

(A) like it is indicative that
(B) as if to indicate
(C) to indicate that
(D) indicative of
(E) like an indication of

This sentence depends on the correct use of an idiom. The verb seem should be followed by an infinitive, to indicate; the relative pronoun that introduces a clause. Subordinate clauses, such as the one that completes this sentence, can be introduced by a relative pronoun (who, which, that) or by a conjunction, but never by a preposition (like).




A The preposition like cannot introduce a clause
B The verb seem may be followed by as if in some contexts, but here the result is an ungrammatical and illogical construction
C Correct. In this sentence, the verb seem is correctly followed by the infinitive to indicate, and the pronoun that correctly introduces a clause.
D The adjective indicative of cannot introduce a clause
E The preposition like cannot introduce a clause; an indication of is wordy

The correct answer is C.

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