Question

elaborate any two objectives of index number​

Answer 1

The purpose of these index numbers is to measure time to time changes in money wages. These index numbers, when compared with the working class cost-of-living index numbers, provide information regarding the changes in the real wages of the workers.

Answer 2

In Economics,Index Number basically estimates the change in the intrinsic value of money relative to the changes in the overall price level of goods and services in the economy.

Explanation:

Main objectives of Index Number:-

1. In the context of economic policy formulation,index number can be an extremely useful tool.Index number basically portrays the variations in important economic variables in the economy which can enable the government policymakers to design or formulate appropriate policies and regulations.
2. Index number can be an essential indicator of standard of living in any country.As it basically measures the changes in the real value of money with respect to the overall price level,it can also provide an overview of the real purchasing power of the consumers and the real income level earned by individuals or households.