CBSE · Class 11 · Economics · Index NumbersWhat is an index number often called?
Step-by-Step Solution
An index number is often called the barometer of economic activity because it measures the changes in the economic condition of a country over time, similar to how a barometer measures atmospheric pressure.
Detailed Options Breakdown
Option : Economic thermometer
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Index Numbers.
Option 1: Barometer of economic activity (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Statistical compass
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Index Numbers.
Option 3: Mathematical scale
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Index Numbers.
💡 Study Guide: This question tests core syllabus concepts from Index Numbers. For formulas, key summaries, and mock exam reference guides, read the full Index Numbers Revision Notes.