Index Numbers — Flashcards

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An index number is a statistical measure designed to measure changes in variables or a group of related variables with respect to time, geographic location, or other characteristics such as income and…

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Index numbers are called economic barometers because they show the ups and downs in the economy. They help measure changes in prices, production, wages, and trade, so they give a quick idea of economi…

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Index numbers measure changes that are not directly measurable, show relative changes in percentage terms, measure net changes in a single number, and are a specialised type of average because they co…

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An index value of 150 means production is 50% higher than in the base year. For example, if industrial production index is 150 in 2004 compared to 2000, there is a net increase of 50%, even if some it…

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The three main types are price index numbers, quantity index numbers, and value index numbers. Price index numbers measure price changes, quantity index numbers measure changes in output or consumptio…

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Consumer Price Index, or CPI, measures the average change in prices paid by ultimate consumers for a specified basket of goods and services. It is also called the Cost of Living Index, Retail Price In…

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CPI reflects changes in the cost of living. It helps measure how much prices paid by consumers have changed, so it is useful for understanding inflation and changes in purchasing power.

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The major groups are industrial workers, urban non-manual workers, agricultural labourers, and CPI for rural and urban areas combined. These groups help build different CPI series for different sectio…