Question
Write any three uses of index number especially in economics.

Answer

Uses of index number are:
  1. Index numbers are helpful in measuring the purchasing power i.e., value of the money.
  2. These numbers are used to measure level of economic activities like import, export, production, population, etc.)
  3. These numbers are helpful in evaluating economic policy e.g., index number helps in knowing the effect of export policy on export.

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