UPSC Exam > UPSC Questions > Indexation is a method that use can be associ...
Start Learning for Free
Indexation is a method that use can be associated with which of the following?
- a)Measurement of savings rate
- b)Fixing of wage compensation
- c)Nominal GDP estimation
- d)Adjust for the effects of inflation
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Indexation is a method that use can be associated with which of the fo...
- Indexation means adjusting a price, wage, or other value based on the changes in another price or composite indicator of prices.
- Indexation can be done to adjust for the effects of inflation, cost of living, or input prices over time, or to adjust for different prices and costs in different geographic areas.
- Indexation is often used to escalate wages in inflationary environments where failure to negotiate regular wage increases would lead to ongoing real wage cuts for workers.
Free Test
FREE
| Start Free Test |
Community Answer
Indexation is a method that use can be associated with which of the fo...
Indexation is a method that can be associated with adjusting for the effects of inflation.
Explanation:
Indexation is a technique used to adjust the value of a variable or asset to account for changes in the general price level or inflation. It is commonly used in economics and finance to ensure that the value of a specific variable or asset remains constant in real terms, even as inflation erodes its purchasing power.
Adjusting for the effects of inflation:
One of the primary purposes of indexation is to adjust for the effects of inflation. Inflation refers to the general increase in prices over time, which reduces the purchasing power of money. When prices rise, the value of money decreases, and individuals are not able to buy the same amount of goods and services with the same amount of money.
Measurement of savings rate:
Indexation is not directly associated with the measurement of savings rate. The savings rate is typically calculated as the percentage of disposable income that is saved by individuals or households. It is a measure of how much money is being saved rather than spent. Indexation does not play a role in this calculation.
Fixing of wage compensation:
Indexation is not directly associated with the fixing of wage compensation. Wage compensation refers to the amount of money paid to employees in exchange for their work. The fixing of wage compensation is determined by various factors such as labor market conditions, supply and demand, and bargaining power. Indexation does not have a direct impact on this process.
Nominal GDP estimation:
Indexation is not directly associated with the estimation of nominal GDP. Nominal GDP is a measure of the total value of goods and services produced in an economy during a specific period, without adjusting for inflation. It is calculated by using current market prices. Indexation, on the other hand, is used to adjust for inflation and convert nominal values into real values.
In conclusion, indexation is a method that is primarily associated with adjusting for the effects of inflation. It helps to maintain the real value of a variable or asset over time by accounting for changes in the general price level. Indexation is not directly related to the measurement of savings rate, fixing of wage compensation, or nominal GDP estimation.
Explanation:
Indexation is a technique used to adjust the value of a variable or asset to account for changes in the general price level or inflation. It is commonly used in economics and finance to ensure that the value of a specific variable or asset remains constant in real terms, even as inflation erodes its purchasing power.
Adjusting for the effects of inflation:
One of the primary purposes of indexation is to adjust for the effects of inflation. Inflation refers to the general increase in prices over time, which reduces the purchasing power of money. When prices rise, the value of money decreases, and individuals are not able to buy the same amount of goods and services with the same amount of money.
Measurement of savings rate:
Indexation is not directly associated with the measurement of savings rate. The savings rate is typically calculated as the percentage of disposable income that is saved by individuals or households. It is a measure of how much money is being saved rather than spent. Indexation does not play a role in this calculation.
Fixing of wage compensation:
Indexation is not directly associated with the fixing of wage compensation. Wage compensation refers to the amount of money paid to employees in exchange for their work. The fixing of wage compensation is determined by various factors such as labor market conditions, supply and demand, and bargaining power. Indexation does not have a direct impact on this process.
Nominal GDP estimation:
Indexation is not directly associated with the estimation of nominal GDP. Nominal GDP is a measure of the total value of goods and services produced in an economy during a specific period, without adjusting for inflation. It is calculated by using current market prices. Indexation, on the other hand, is used to adjust for inflation and convert nominal values into real values.
In conclusion, indexation is a method that is primarily associated with adjusting for the effects of inflation. It helps to maintain the real value of a variable or asset over time by accounting for changes in the general price level. Indexation is not directly related to the measurement of savings rate, fixing of wage compensation, or nominal GDP estimation.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
Indexation is a method that use can be associated with which of the following?a)Measurement of savings rateb)Fixing of wage compensationc)Nominal GDP estimationd)Adjust for the effects of inflationCorrect answer is option 'D'. Can you explain this answer?
Question Description
Indexation is a method that use can be associated with which of the following?a)Measurement of savings rateb)Fixing of wage compensationc)Nominal GDP estimationd)Adjust for the effects of inflationCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Indexation is a method that use can be associated with which of the following?a)Measurement of savings rateb)Fixing of wage compensationc)Nominal GDP estimationd)Adjust for the effects of inflationCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Indexation is a method that use can be associated with which of the following?a)Measurement of savings rateb)Fixing of wage compensationc)Nominal GDP estimationd)Adjust for the effects of inflationCorrect answer is option 'D'. Can you explain this answer?.
Indexation is a method that use can be associated with which of the following?a)Measurement of savings rateb)Fixing of wage compensationc)Nominal GDP estimationd)Adjust for the effects of inflationCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Indexation is a method that use can be associated with which of the following?a)Measurement of savings rateb)Fixing of wage compensationc)Nominal GDP estimationd)Adjust for the effects of inflationCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Indexation is a method that use can be associated with which of the following?a)Measurement of savings rateb)Fixing of wage compensationc)Nominal GDP estimationd)Adjust for the effects of inflationCorrect answer is option 'D'. Can you explain this answer?.
Solutions for Indexation is a method that use can be associated with which of the following?a)Measurement of savings rateb)Fixing of wage compensationc)Nominal GDP estimationd)Adjust for the effects of inflationCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Indexation is a method that use can be associated with which of the following?a)Measurement of savings rateb)Fixing of wage compensationc)Nominal GDP estimationd)Adjust for the effects of inflationCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Indexation is a method that use can be associated with which of the following?a)Measurement of savings rateb)Fixing of wage compensationc)Nominal GDP estimationd)Adjust for the effects of inflationCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Indexation is a method that use can be associated with which of the following?a)Measurement of savings rateb)Fixing of wage compensationc)Nominal GDP estimationd)Adjust for the effects of inflationCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Indexation is a method that use can be associated with which of the following?a)Measurement of savings rateb)Fixing of wage compensationc)Nominal GDP estimationd)Adjust for the effects of inflationCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Indexation is a method that use can be associated with which of the following?a)Measurement of savings rateb)Fixing of wage compensationc)Nominal GDP estimationd)Adjust for the effects of inflationCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup