## Types of index numbers in economics

Following types of index numbers are generally used 1. Price Index Numbers. These index numbers shows changes in the wholesale or retail prices of a particular commodity or a number of commodities. 2. Quantity Index Numbers. These index numbers measure changes in the volume or quantity of goods produced or goods exported or imported. 3 Index Numbers Suppose the price of a commodity changes from 100 to 120 and then from 120 to 180. Here just by looking at this information, we can tell that the price has hiked by 20% and 80% respectively with respect to the initial price. Class 11 Economics -Introduction to index numbers 1. Economics: Introduction to index numbers PRESENTED BY- Poonam Dua Amend Education Academy www.amendeducation.com 2. Topic Introducation • An index number is an economic data figure reflecting price or quantity compared with a standard or base value. Different types of index number which can be classified into the following heads: price index number, quantity index number, value Index number, weighted index number, unweighted index number, singular index number and more. Download chapter wise important exam questions and answers Assignments of NCERT Economics, CBSE Class 11 Economics Introduction to index numbers. CBSE Assignment for Class 11 Economics -Introduction to index numbers . Based on CBSE and CCE guidelines. The students should read these basic concepts to gain perfection which will help him to get more marks in CBSE examination.UNIT Types Of Index Numbers 1. 20-2 2. A price index measures the changes in prices from a selected base period to another period. EXAMPLE: Price index is widely applied in various economic and business policy formation and decision making.It is used to measure cost of living of teachers,farmers and weavers.It is also used to construct price index

## 1 Jan 2009 economic theoretic approach to index number formulas supports practice Laspeyres-type indexes are often calculated because data on

unit we shall discuss the methods of constructing various types of index numbers. These are often termed as 'economic barometers'. An index number may be be the estimated relative importance of a product. There are several types of indices defined, among them those listed in the following table. index, abbr. formula. 17 Mar 2018 Introduction to Index Number class 11 Notes Economics Chapter 8 in PDF format for free download. Latest chapter Types of Index numbers: INDEX NUMBER THEORY AND MEASUREMENT ECONOMICS. By W.E. Diewert, Bean and Stine's (1924; 31) Type A index number formula. Bean and Stine The paper rationalizes certain functional forms for index numbers with functional forms for the underlying Review of Economics and Statistics, 63 (1961), pp.

### 1 Jan 2009 economic theoretic approach to index number formulas supports practice Laspeyres-type indexes are often calculated because data on

An index number is an economic data figure reflecting price or quantity compared with a standard or base value. The base Index numbers are also useful in providing information regarding production trends in different sectors of the economy. They help in assessing the actual condition Index numbers are used to measures all types of quantitative changes in the agricultural, industrial, and commercial fields, as also in such economic magnitudes Index numbers are represented as percentages of a single base number. It plays a vital role in statistical economics. It is used to determine the changes in the 21 Jan 2014 EXAMPLE: Price index is widely applied in various economic and business policy formation and decision making.It is used to measure cost of

### Index number may be classified in terms of what they measure. In economic and business the classifications are: (1) price; (2) quantity; (3) value; and Since the method of construction of various types of index numbers can be understood if

Index numbers are used to measure changes in the value of money. A study of the rise or fall in the value of money is essential for determining the direction of production and employment to facilitate future payments and to know changes in the real income of different groups of people at different places and times. Read about the role of an index number in economics and how index numbers can be applied to all kinds of data, such as inflation or productivity. Index Numbers: Methods of Construction of Index Number! An index number is a statistical derives to measure changes in the value of money. It is a number which represents the average price of a group of commodities at a particular time in relation to the average price of the same group of commodities at another time. Index numbers are a commonly used statistical device for measuring the combined fluctuations in group-related variables. If we wish to compare the prices of consumer items today with their prices ten years ago, we are not interested in comparing the prices of only one item, but in comparing average price levels. Time series data are expressed in terms of index numbers. If we want to get the index number of prices of2009 relative to that of 2005, we calculate the ratios of 2009 prices to 2005 prices for each product that the economy produces, then average of all those ratios is obtained.

## 21 Jan 2014 EXAMPLE: Price index is widely applied in various economic and business policy formation and decision making.It is used to measure cost of

Index numbers are unit-free measures of economic indicators. A price index is essentially the weighted average of prices of a certain type of good or service. Index number may be classified in terms of what they measure. In economic and business the classifications are: (1) price; (2) quantity; (3) value; and Since the method of construction of various types of index numbers can be understood if

25 Aug 2014 Then in Section 4, we briefly survey some of the other approaches to index number theory. In Section 5, we relate various functional forms for However, there are a number of different forms of indices and this article attempts to explain the subtle Economic & Labour Market Review (2007) 1, 54–57; 16 Mar 2007 Statistics,particularly economic statistics, are published in the form of indices. However, there are a number of different forms of indices 22 Sep 2015 Statistics measured using some type of index number include; infla- appreciation of Index Numbers can provide economics students with a