Why do we need an index number?

Asked by Last Modified  

2 Answers

Learn Economics +1

Follow 3
Answer

Please enter your answer

Krishna Tution

We need Index numbers because it helps to assess the living standard of people and Cost of measures the relative cost of living over time.
read more
We need Index numbersbecause it helpsto assess the living standard of people and Cost of measures the relative cost of living over time. read less
Comments

Erudite and resuscitating interest in study

To measure the purchasing power of money and it also helps in framing suitable policies
Comments

Related Questions

Should I join a coaching institute in the 11th class or do self-study?
There two factors in this: 1. Why do you think you should join coaching? Let me reframe- Do you think you need coaching? What do you intend to achieve form it? 2. What are your subjects? If you are studying...
Gene
0 0
8
Is it really important to take coaching in class 11 as a PCM student?
Yes, If you want to get selection in IIT. Because for IIT JEE examination you must have basic knowledge of PCM subjects which are possible only deep study of subjects (PCM). within time only best coaching...
Sonam
0 0
5
What will be the effect of change in income on giffin goods and normal goods ?
Giffen goods are a special kind of inferior products in which demand increases when price increases. But in the case of income changes, there's an inverse relationship between market and income. With an...
Suneha Sharma
0 2
7
Is class 11 coaching important or not?
Most of the basics required for studying Engineering is in 11th and 12th syllabus. One should be clear in all the topics, then only he/she will be able to under stand the applications of science in engineering.
Sagar
0 0
6
As the supply of tomatoes increases in your local mandi, its price drops. When the local harvest starts reaching the market, the price of tomatoes drops from Rs. 40 per kg to Rs 4 per kg or even less. Is there any relationship between two variables?
The fall in price of tomatoes when the local harvest starts reaching the market is due to following two readons: 1. When supply is in much excess of demand , as per basic theory of economics the price...
Meenakshi
0 0
5

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons



Characteristics/Qualities of Good Money - Class XII Economics (Macro-Economics)
Qualities/Characteristics of Good Money - HSC/SYJC/Class 12/Standard XII Macro-Economics - Commerce - Maharashtra State Board Also helpful for IGCSE/GCSE Economics and ICSE Class 10


Role of Central Bank in the Economy
The primary objective of the ECBs monetary policy is to maintain price stability. The ECB aims atinflation rates of below, but close to, 2% over the medium term.The operational framework of theEurosystem...

Recommended Articles

With the mushrooming of international and private schools, it may seem that the education system of India is healthy. In reality, only 29% of children are sent to the private schools, while the remaining head for government or state funded education. So, to check the reality of Indian education system it is better to look...

Read full article >

While schools provide formal education to the children, the home is where they start learning about things informally. Parents think that schools will take the initiative to educate their children. Well, this is partially true, as parents also play an essential role in bringing up their child. For the development of particular...

Read full article >

Appearing for exams could be stressful for students. Even though they might have prepared well, they could suffer from anxiety, tension etc. These are not good for their health and mind. However, following a few exam preparation tips can save them from all these and help them to score good marks. Let’s find out all...

Read full article >

Learning for every child starts from a very young age. While the formal methods include school curriculums and private lessons, the informal methods include dancing, music, drawing, and various fun-filling activities. Playing games and practising these types of activities helps the children get out of boredom and...

Read full article >

Looking for Class 11 Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you