When studying economic data,index numbers are especially valuable when comparing
A)linear and logarithmic data.
B)relative movements in different variables measured in different units.
C)time- series data with cross- sectional data.
D)relative movements in real and nominal variables.
E)government data with private- sector data.

Question

Quizplus · Accepted Answer

Index numbers are particularly useful for comparing relative movements in variables that are measured in different units. They provide a standardized measure that allows for easy comparison over time or between different groups. Linear and logarithmic data can also be compared using index numbers, but this is not their primary purpose. Likewise, while index numbers can be used to compare time-series data with cross-sectional data, this is not their primary purpose either. Real and nominal variables can be compared using index numbers, but this is not the only application for which they are useful. Finally, index numbers can be used to compare both government and private-sector data.

When Studying Economic Data,index Numbers Are Especially Valuable When Comparing