Index NUmber

Question 1

What is Index Number

Answer 1

Used to measure changes and simplify comparisons; comparisons can be made between countries with different values.

Question 2

What year is used in Index Number?

Answer 2

A base year (typically 100)

Question 3

What are the results given in Index Number?

Answer 3

Calculations are given in percentage without the % sign

Question 4

Equation for Index Number

Answer 4

Value/Base Value *100

Question 5

What are the 3 ways to measure GDP?

Answer 5

National Output = National Expenditure = National Income

Question 6

Equation for National Expenditure

Answer 6

Consumer+Government Spending + Business Investment (Exports- Imports)

Question 7

What does more national income mean? (List 3) and explain

Answer 7

1: More Consumption: Consumers benefits from consuming more goods and services. 2: Improved public services = better education/healthcare etc. 3: Reduced Poverty