Practice - Index Numbers
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Practice Questions
Test your understanding with targeted questions
Define index numbers.
💡 Hint: Think about how changes compare to a base reference.
What is the purpose of the price index?
💡 Hint: Consider its role in assessing inflation.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What does an index number compare economic data to?
💡 Hint: Think about the concept of relativity in index numbers.
True or False: Quantity index numbers measure price level changes.
💡 Hint: Remember the definitions we discussed.
2 more questions available
Challenge Problems
Push your limits with advanced challenges
You have a set of data showing that the prices of five products have changed from base year prices to current year prices. Construct a price index number using the Simple Aggregate Method.
💡 Hint: Make sure to carefully collect your sums!
If the following products have the following weights and price changes: Product A (weight 2, price change 40%), Product B (weight 3, price change 10%). What is the overall index number?
💡 Hint: Think about how each weight affects the final number.
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Reference links
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