CBSE · Class 11 · Economics · Index NumbersWhich of the following is a limitation of index numbers?
Step-by-Step Solution
Index numbers are only approximate indicators because they are based on samples and cannot be absolutely precise.
Detailed Options Breakdown
Option : They provide exact measurements
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Index Numbers.
Option 1: They are free from bias
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Index Numbers.
Option 2: They are only approximate indicators (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 3: They are universally applicable
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.