7.1 - INTRODUCTION
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Practice Questions
Test your understanding with targeted questions
What is the main purpose of an index number?
💡 Hint: Think about what indices help us track.
Define inflation.
💡 Hint: Consider what happens to your money's value over time.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does an index number measure?
💡 Hint: Consider the function of index numbers.
True or False: Inflation measures the decrease in prices over time.
💡 Hint: Reflect on what inflation actually means.
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Challenge Problems
Push your limits with advanced challenges
You are given data about the prices of a specific item over the last decade. Develop an index number for this item, using the first year as the base year. Explain your method.
💡 Hint: Focus on the formula for index numbers.
Analyze how a rise in the Consumer Price Index affects lower-income families and propose a solution.
💡 Hint: Think about the impact on daily expenses.
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Reference links
Supplementary resources to enhance your learning experience.