Question

To calculate cost of living index number for the year 2011, the base year can
be considered as
(a) 1950
(c) 1930
(b) 1970
( 2000​

Answer 1

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Answer 2

The correct answer is (d) 2000

• A cost-of-living index is a hypothetical pricing index that compares the expense of living across time and regions.
• It's a pricing index that tracks price differences between goods and services and allows for alternatives when prices change.
• A cost of living index can be used to determine whether or not a person's income or pay is sufficient to cover basic expenses.
• For the years above 2000, the base year is to be taken is 2000.