Index Numbers Flashcards
Index numbers are expressed in_________
Terms of percentage
P¹ and P⁰ indicate the price of the commodity in the current and ________ period respectively
Base
CPI
Consumer price index
WPI
Wholesale price index
IPI
Industrial production index
API
Agriculture price index
PPI
Producer price index
What is index number?
It is a specialized average designed to measure the changes in a variable with respect to time
What is price relative
Price relative is the price in the current year expressed as a percentage of prices in the base year
What is inflation?
Inflation refers to rise the prices of essential commodities
Write the formula to calculate index of industrial production
IIp⁰¹=Sigma q1 x W
———————– x 100
Sigma w
What is sensex
Sensex is a free float market capitalisation, weighted stock market index of 30 we’ll established and financially sound companies listed on Bombay stock exchange
Consumer Price Index measures changes in
Retail prices
in index number of which year price is assumed to be 100
100
Laspeyer’s index is based on
base year quantity
Paasche’s index is based on
current year quantity
Consumer Price Index is used in calculating the purchasing power of money and _____________
inflation
Wholesale Price Index does not include items pertaining to _______________
servicSensex is an useful guide for investors in the share market.es
Sensex is an useful guide for investors in the_______________
share market.
Cost of living index is also known as ______________
consumer price index
Which Index number is widely used to measure the rate of inflation?
WPI (wholesale price index)
