What does the Human Development Index (HDI) seek to capture?

Changes in the purchasing power of money.

Access to education and knowledge, standard of living, and health.

Price trends in consumer goods and services.

Performance of industrial sectors in the economy.

Which index measures the performance of various industrial sectors in the Indian economy?

Index of Industrial Production (IIP)

What is the Consumer Price Index (CPI) primarily used for?

Tracking price trends in wholesale goods.

Measuring changes in the purchasing power of money.

Assessing changes in inflation and deflation.

Reflecting fluctuations in the price level of consumer goods and services.

What is the main purpose of constructing index numbers?

To measure differences in the magnitude of a set of related variables.

To track the performance of the stock market.

To evaluate macroeconomic conditions.

To reflect changes in retail inflation.

What is the purpose of selecting a base year in constructing index numbers?

To measure differences in the magnitude of related variables.

To evaluate macroeconomic conditions.

To provide an overall indication of trends.

To serve as a reference period for comparison.

What is the significance of using weighted index numbers?

They simplify the calculation process.

They give equal importance to all items.

They reflect changes in the quantity of items.

They are primarily used in the stock market.

Which method of constructing index numbers involves dividing the weighted sum of price relatives by the total sum of weights?

Weighted Average of Price Relative Method

Simple Average of Price Relatives Method

Which index is used to track movements in the Indian stock market?

Index of Industrial Production (IIP)

How do index numbers help in adjusting salaries and allowances?

By measuring the purchasing power of money.

By evaluating macroeconomic conditions.

By reflecting changes in the price level.

By providing an overall indication of trends.

What is the primary purpose of the Wholesale Price Index (WPI)?

To measure changes in the purchasing power of money.

To track price trends in consumer goods and services.

To evaluate macroeconomic and microeconomic conditions.

To reflect price changes of wholesale goods in manufacturing and industry.

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