USES OF INDEX NUMBERS
USES OF INDEX NUMBERS USES OF INDEX NUMBERS The uses of index numbers are shown below: 1. They measure the relative change: Index numbers are particularly useful in measuring relative changes. They give better idea of changes in levels or price, production, business activity employment, etc. 2. They are of better companion The index number reduces the changes of price level into more useful and understandable form. The numbers of the changes are further reduced to percentages which are easily comparable. 3. They are goods guides: Index numbers are not restricted to the price phenomenon, alone. any phenomenon, which is spread over a period to time ,is capable to being expressed numerically through index number. 4. They are economic barometers: Various index numbers computed for different purposes; say employment, trade, transport, agriculture, industry, etc, are of immense value in dealing with, different e...