Simple Index Numbers and Weighted Index Numbers.
|Simple index numbers||Weighted index numbers|
|1)||Simple index numbers is a method of constructing an index number in which every commodity is given equal importance.||Weighted index numbers is a method of constructing an index number in which suitable weights are assigned to various commodities.|
|2)||This method can be applied to determine the price index number, quantity index number, and value index number.||The method can be applied to determine price index numbers and the special-purpose index numbers.|
|3)||It is the easiest method for constructing index numbers.||It is relatively complex as compared to simple index numbers.|
Concept: Construction of Index Numbers
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