Question

Statements that are correct in relation to Index Numbers:

1. Index numbers are a geographical tool.
2. Index numbers measure changes in the air pressure.
3. Index numbers measure relative changes in an economic variable.
4. Index numbers are specialised averages.

Options

• c and d

• a and b

• b and c

• a and d

Answer 1

c and d

Explanation:

Index numbers measure relative changes in economic variables (such as prices or production) and are specialised averages, usually expressed as percentages. They compare a current period with a base period and are statistical tools, not geographical measures or air-pressure instruments.