Question

index number for base year is always considered as a) 100 b) 101 c) 201 d) 1000 ?​

Answer 1

Answer:-Is 100

The base period or base year refers to the year in which an index number series begins to be calculated. This will invariably have a starting value of 100.

Answer 2

(a) 100 is the index number for the base year.

Explanation:

• Base year refers to the initial series of the years.
• Index number refers to an economical aspect of data, where the prices and quantities of products and services are compared to a standard to a base number.
• Therefore, a base year refers to that year where the index is taken to be hundred.
• It is used while computing inflation, growth rates, etc.