- An index number is a statistical device for measuring relative change in a large number of items.
- There are several formulae for computing an index number based on the choice of base period and on the question of interest
- Every formula needs to be interpreted carefully
- Widely used index numbers are wholesale price index, consumer price index, index of industrial production, agricultural production index and sensex.
- The index numbers are irreplacable in economic policy making.
- This is only a practice test, it is designed to help you revise your concepts
- The test contains questions, only 1 option is correct for each question
- This is a timed test.
- After you have finished the test, press on the 'Finish Test' button to know your score and get the correct answers