Which of the following is true about index numbers? Index numbers are:
A) used to measure the trend component.
B) used to measure the seasonal component.
C) used to measure the cyclical component.
D) used to make a relative comparison of different time periods.

Question

Quizplus · Accepted Answer

Index numbers are primarily used for making relative comparisons between different time periods, allowing for the assessment of trends, economic changes, price movements, or productivity changes over time. They are not specifically designed to measure the trend, seasonal, or cyclical components individually, but rather to provide a general comparison across periods.

Which of the Following Is True About Index Numbers? Index