Practice Example 1: Calculation Of Simple Aggregative Price Index (7.3.1) - Index Numbers
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Example 1: Calculation of simple aggregative price index

Practice - Example 1: Calculation of simple aggregative price index

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Practice Questions

Test your understanding with targeted questions

Question 1 Easy

Define index number.

💡 Hint: Think about economics and comparisons.

Question 2 Easy

What does a simple aggregative price index do?

💡 Hint: Look for the concept of time in your answer.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What does an index number measure?

Changes in prices
Quality of goods
Supplier ratings

💡 Hint: Focus on the changes in economics.

Question 2

True or False: A simple aggregative price index considers the weight of each item.

True
False

💡 Hint: Think about how all items are treated equally.

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Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

Consider a scenario where the price of essential goods rises significantly. Discuss how you would calculate its impact on the living standards if using a simple aggregative index.

💡 Hint: Focus on the importance of weighting.

Challenge 2 Hard

Analyze the impact of false indexing on economic policies through examples. What consequences could arise?

💡 Hint: Think about real-world implications of data accuracy.

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Reference links

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