Question

an index number measuring the general changes in the price of goods over a period of time is called___ index number.

a)price
b) quantity
c)value
d) average​

Answer 1

An index number measuring the general changes in the price of goods over a period of time is called the price index number.

Option (a) is correct.

Explanation:

• Price index numbers are averages numbers that measure the general changes in values.
• The changes in the value of money are not significant for individual values.
• The individual values are not much affected by the overall change in the values.
• From the graph, it is clear that the index number 4 is responsible for the change in values.