NCERT · Class 11 · Economics · Index NumbersIn constructing a consumer price index, which of the following is generally used?
Step-by-Step Solution
Family budget method or weighted average of price relative method is generally used for constructing the consumer price index.
Detailed Options Breakdown
Option : Simple aggregative method
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Index Numbers.
Option 1: Family budget method (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Simple average of price relatives
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Index Numbers.
Option 3: Chain base method
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Index Numbers.
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