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प्रश्न
Discuss about Cost of Living Index Number
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उत्तर
Cost of Living Index Number is constructed to study the effect of changes in the price of goods and services of consumers for a current period as compared with the base period.
The change in the cost of living index number between any two periods means the change in income which will be necessary to maintain the same standard of living in both periods.
Therefore the cost of living index number measures the average increase in the cost to maintain the same standard of life.
Further, the consumption habits of people differ widely from class to class (rich, poor, middle class) and even with the region.
The changes in the price level affect the different classes of people, consequently, the general price index numbers fail to reflect the effect of changes in their cost of living in different classes of people.
Therefore, the cost of living index number measures the general price movement of the commodities consumed by different classes of people.
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संबंधित प्रश्न
Statements that are incorrect in relation to index numbers:
- An index number is a geographical tool.
- Index numbers measure changes in air pressure.
- Index numbers measure relative changes in an economic variable.
- Index numbers are specialized averages.
Index numbers that measure changes in the level of output or physical volume of production in the economy −
Index number was originally developed to measure ______.
Index number which is computed from a single variable called is a ______.
Explain factor reversal test
Calculate price index number for 2005 by (a) Laspeyre’s (b) Paasche’s method
| Commodity | 1995 | 2005 | ||
| Price | Quantity | Price | Quantity | |
| A | 5 | 60 | 15 | 70 |
| B | 4 | 20 | 8 | 35 |
| C | 3 | 15 | 6 | 20 |
Compute (i) Laspeyre’s (ii) Paasche’s (iii) Fisher’s Index numbers for the 2010 from the following data.
| Commodity | Price | Quantity | ||
| 2000 | 2010 | 2000 | 2010 | |
| A | 12 | 14 | 18 | 16 |
| B | 15 | 16 | 20 | 15 |
| C | 14 | 15 | 24 | 20 |
| D | 12 | 12 | 29 | 23 |
Choose the correct alternative:
Most commonly used index number is:
The base year's index of a selected variable is assumed as ______.
Find the odd word out:
Features of Index Number:
