Index Numbers — Economics STD 12 Commerce / Arts — Question

No, I do not agree with this statement.
Although index numbers are very useful in business and industry, they suffer from following limitation:

• Bias in the data: If the data is not collected properly, we may not get proper index numbers.
• Based on samples : If the samples are not collected properly, there may be error in index number calculations.
• Misuse of index number : We compare the index numbers with the base year, but if a businessman chooses a base year in which profits are high and show that his profits are falling now.
• Changes in the economy : In long run habits, tastes, etc of people may change, so it is difficult to include all such changes in index number.
  Hence, it is not right to say that index numbers are free from limitations.