SlideShare a Scribd company logo
2
Most read
4
Most read
5
Most read
Index number
Introduction
 Index Numbers were originally developed to measure
the change in the price level.
 Index numbers are described as “economic
barometers”
 The word economic barometer used by the economist,
businessmen, and the policy markers etc. To measure
the trends and changes in the economy.
Definition
“Index Numbers are devices for
measuring differences in the
magnitude of a group of relative
variable”
Types of Index Numbers
1. Price index
a) Wholesale price index number: Measure the general price level
of goods traded in the wholesale market.
b) Retail Price index Number: Measure the change in the retail
prices of various commodities e.g. index numbers of bonds,
securities, price, consumer price index numbers etc.
c) Cost of living index number: Measure the change in the cost of
living of different classes of the people over a period of time.
2. Quantity Index: It measures the relative
changes in the quantities of agricultural and industrial
goods produced over a period of time.
3. Special purpose index numbers: These
are constructed with some specific purpose e.g. import-
export, labour productivity, share price.
Importance of Index Number
1. Index Number help in framing suitable policies: e.g.
wages policy, tax policy, dearness allowance decision
etc.
2. Index numbers help in the study of trends and
tendencies: e.g. changes in price level, agricultural
and industrial production, import export etc.
3. Index numbers are economic barometer:
4. Index numbers can measure the value of money:
5. Index numbers help to adjust national income:
6. Index numbers helps sociologist and psychologists:
Limitations of index Numbers
1. Based on samples
2. Bias in the data.
3. Misuse of index numbers
4. Defects of formulate
5. Changes in the economy
6. Qualitative changes
7. Arbitrary weights
8. Limited scope.

More Related Content

PPTX
PPT
Business economics meaning, definitions etc
PPTX
Index number
PPTX
Leontief Paradox.pptx
PPTX
Comparative cost advanatge theory
PPTX
Index number
PPTX
Terms of trade
PPSX
Theory of income and employment chap 1
Business economics meaning, definitions etc
Index number
Leontief Paradox.pptx
Comparative cost advanatge theory
Index number
Terms of trade
Theory of income and employment chap 1

What's hot (20)

PPTX
Scope of Management Accounting
PPTX
Investment function
PDF
Static and dynamic economics
PPTX
Offer Curves | Economics
PPT
Types Of Index Numbers
PPTX
Theories of Business Cycles
PPT
Deficit financing
PPT
Investment function
PPTX
Revealed preference theory
PPSX
Restatement of quantity theory of money
PPTX
BS6_Measurement of Trend.pptx
PPTX
Cost Comparative Theory
PPT
Capital budgeting
PPT
classical theory of employement
PPTX
Scope of managerial economics
PPTX
The linder hypothesis- Li Wenwen
PPTX
Absolute advantage theory
PPT
BAUMOL THEORY.ppt
PPTX
Theory of emplyment
PPTX
Managerial theories
Scope of Management Accounting
Investment function
Static and dynamic economics
Offer Curves | Economics
Types Of Index Numbers
Theories of Business Cycles
Deficit financing
Investment function
Revealed preference theory
Restatement of quantity theory of money
BS6_Measurement of Trend.pptx
Cost Comparative Theory
Capital budgeting
classical theory of employement
Scope of managerial economics
The linder hypothesis- Li Wenwen
Absolute advantage theory
BAUMOL THEORY.ppt
Theory of emplyment
Managerial theories
Ad

Viewers also liked (20)

PPTX
Evolving role of teacher
PPT
Index Number
PPTX
Index numbers
PDF
Statistics lecture 12 (chapter 12)
PPT
Index Numbers
PPTX
Index number
PPTX
Index numbers
PPTX
I ndex no_stats
PPTX
Index number
PPTX
What are microbial communities? An ecological approach
PPTX
Stock market in germany
PPT
Roles of teacher
PPTX
Lg 546 week 4 esp & eap
PPT
Ch1 2 index number
PPTX
GATT AND WTO
PPT
Priyanka GATT
PPTX
GATT and WTO
PPT
Indics /certified fixed orthodontic courses by Indian dental academy
PPTX
2016 SH2 H2 Maths Correlation & Regression E-Learning Module
PPTX
Data analysis
Evolving role of teacher
Index Number
Index numbers
Statistics lecture 12 (chapter 12)
Index Numbers
Index number
Index numbers
I ndex no_stats
Index number
What are microbial communities? An ecological approach
Stock market in germany
Roles of teacher
Lg 546 week 4 esp & eap
Ch1 2 index number
GATT AND WTO
Priyanka GATT
GATT and WTO
Indics /certified fixed orthodontic courses by Indian dental academy
2016 SH2 H2 Maths Correlation & Regression E-Learning Module
Data analysis
Ad

Similar to Index number (20)

PPTX
Statistics for managers
PPTX
Index Number.pptx
PPTX
Slide index Number intro
PDF
sesx.pdf
PDF
stat3072.pdf
PDF
ses.pdf
PPTX
Index Numbers - meaning, characteristics and uses.
PPTX
Index numbers
PPTX
tot_wp-content_uploads_2019_12_m10_session-i.pptx
PPTX
Importance of index number in managerial decision making
PPTX
Statistics index number tot_wp-content_uploads_2019_12_m10_session-i.pptx
PPTX
Index Numbers are statistical tools that measure changes in a variable
PPT
Index Number *a statistical tool that measures changes in a group of data p...
PDF
Index NumbersI.ppt.pdf
DOCX
Index number 1
PPTX
power point presentation on Types of index no
DOCX
Indexnumber 1 modified file
PDF
Index Numbers Notes Quantitative Techniques .pdf
POTX
index number ppt shruti arora.potx
PPTX
Indexnumber 140219232048-phpapp01
Statistics for managers
Index Number.pptx
Slide index Number intro
sesx.pdf
stat3072.pdf
ses.pdf
Index Numbers - meaning, characteristics and uses.
Index numbers
tot_wp-content_uploads_2019_12_m10_session-i.pptx
Importance of index number in managerial decision making
Statistics index number tot_wp-content_uploads_2019_12_m10_session-i.pptx
Index Numbers are statistical tools that measure changes in a variable
Index Number *a statistical tool that measures changes in a group of data p...
Index NumbersI.ppt.pdf
Index number 1
power point presentation on Types of index no
Indexnumber 1 modified file
Index Numbers Notes Quantitative Techniques .pdf
index number ppt shruti arora.potx
Indexnumber 140219232048-phpapp01

More from Farheen Khilji (20)

PPTX
Directing- Features of Directing
PPTX
FUNCTIONS OF MANAGEMENT- Organising
PPTX
Planning- FEATURES OF PLAANING
PPTX
Staffing
PPTX
COMMERCE - V MARKETING T.Y.B.COM
PPTX
Techniques of scientific management
PPTX
Significance of principles of management
PPTX
Henri Fayols 14-principles-of-management
PPTX
Fredrick winslow taylor's scientific management theory
PPTX
Features of principles of management
PDF
Outsourcing
PPTX
Outsourcing
PPTX
Online transaction
PPTX
Dell power point presentation
PPT
Marketing strategy of xiaomi
PPT
Cyber insurance
PPT
Wip project on pantaloons
PPTX
Wip project on pantaloons
PPTX
Saffola fittify
PPT
Winter Internship Project - PGDM
Directing- Features of Directing
FUNCTIONS OF MANAGEMENT- Organising
Planning- FEATURES OF PLAANING
Staffing
COMMERCE - V MARKETING T.Y.B.COM
Techniques of scientific management
Significance of principles of management
Henri Fayols 14-principles-of-management
Fredrick winslow taylor's scientific management theory
Features of principles of management
Outsourcing
Outsourcing
Online transaction
Dell power point presentation
Marketing strategy of xiaomi
Cyber insurance
Wip project on pantaloons
Wip project on pantaloons
Saffola fittify
Winter Internship Project - PGDM

Recently uploaded (20)

PDF
O5-L3 Freight Transport Ops (International) V1.pdf
PPTX
school management -TNTEU- B.Ed., Semester II Unit 1.pptx
PPTX
human mycosis Human fungal infections are called human mycosis..pptx
PDF
BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH 9 GLOBAL SUCCESS - CẢ NĂM - BÁM SÁT FORM Đ...
PPTX
Renaissance Architecture: A Journey from Faith to Humanism
PDF
VCE English Exam - Section C Student Revision Booklet
PPTX
Pharma ospi slides which help in ospi learning
PPTX
Institutional Correction lecture only . . .
PDF
FourierSeries-QuestionsWithAnswers(Part-A).pdf
PPTX
IMMUNITY IMMUNITY refers to protection against infection, and the immune syst...
PPTX
Cell Types and Its function , kingdom of life
PPTX
Final Presentation General Medicine 03-08-2024.pptx
PDF
3rd Neelam Sanjeevareddy Memorial Lecture.pdf
PPTX
Introduction_to_Human_Anatomy_and_Physiology_for_B.Pharm.pptx
PDF
Computing-Curriculum for Schools in Ghana
PDF
Insiders guide to clinical Medicine.pdf
PPTX
Pharmacology of Heart Failure /Pharmacotherapy of CHF
PPTX
Lesson notes of climatology university.
PPTX
1st Inaugural Professorial Lecture held on 19th February 2020 (Governance and...
PDF
O7-L3 Supply Chain Operations - ICLT Program
O5-L3 Freight Transport Ops (International) V1.pdf
school management -TNTEU- B.Ed., Semester II Unit 1.pptx
human mycosis Human fungal infections are called human mycosis..pptx
BÀI TẬP BỔ TRỢ 4 KỸ NĂNG TIẾNG ANH 9 GLOBAL SUCCESS - CẢ NĂM - BÁM SÁT FORM Đ...
Renaissance Architecture: A Journey from Faith to Humanism
VCE English Exam - Section C Student Revision Booklet
Pharma ospi slides which help in ospi learning
Institutional Correction lecture only . . .
FourierSeries-QuestionsWithAnswers(Part-A).pdf
IMMUNITY IMMUNITY refers to protection against infection, and the immune syst...
Cell Types and Its function , kingdom of life
Final Presentation General Medicine 03-08-2024.pptx
3rd Neelam Sanjeevareddy Memorial Lecture.pdf
Introduction_to_Human_Anatomy_and_Physiology_for_B.Pharm.pptx
Computing-Curriculum for Schools in Ghana
Insiders guide to clinical Medicine.pdf
Pharmacology of Heart Failure /Pharmacotherapy of CHF
Lesson notes of climatology university.
1st Inaugural Professorial Lecture held on 19th February 2020 (Governance and...
O7-L3 Supply Chain Operations - ICLT Program

Index number

  • 2. Introduction  Index Numbers were originally developed to measure the change in the price level.  Index numbers are described as “economic barometers”  The word economic barometer used by the economist, businessmen, and the policy markers etc. To measure the trends and changes in the economy.
  • 3. Definition “Index Numbers are devices for measuring differences in the magnitude of a group of relative variable”
  • 4. Types of Index Numbers 1. Price index a) Wholesale price index number: Measure the general price level of goods traded in the wholesale market. b) Retail Price index Number: Measure the change in the retail prices of various commodities e.g. index numbers of bonds, securities, price, consumer price index numbers etc. c) Cost of living index number: Measure the change in the cost of living of different classes of the people over a period of time.
  • 5. 2. Quantity Index: It measures the relative changes in the quantities of agricultural and industrial goods produced over a period of time. 3. Special purpose index numbers: These are constructed with some specific purpose e.g. import- export, labour productivity, share price.
  • 6. Importance of Index Number 1. Index Number help in framing suitable policies: e.g. wages policy, tax policy, dearness allowance decision etc. 2. Index numbers help in the study of trends and tendencies: e.g. changes in price level, agricultural and industrial production, import export etc. 3. Index numbers are economic barometer: 4. Index numbers can measure the value of money:
  • 7. 5. Index numbers help to adjust national income: 6. Index numbers helps sociologist and psychologists:
  • 8. Limitations of index Numbers 1. Based on samples 2. Bias in the data. 3. Misuse of index numbers 4. Defects of formulate 5. Changes in the economy 6. Qualitative changes 7. Arbitrary weights 8. Limited scope.