CBSE · Class 11 · Economics · Index NumbersWhich index number is considered as an ideal index number?
Step-by-Step Solution
Fisher's index number is considered as the ideal index number because it satisfies both the time reversal test and the factor reversal test, and it uses both base and current year quantities.
Detailed Options Breakdown
Option : Laspeyres' index
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Index Numbers.
Option 1: Paasche's index
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Index Numbers.
Option 2: Fisher's ideal index (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 3: Simple aggregative index
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.