Download App

Index Numbers — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsIndex Numbers6 Marks
Question
What do you understand by absolute change, relative change and net change?
✓

Answer

Absolute Change: is the actual difference between the prices of a good/service in current year as compared to base year. For example, the price of sugar in 2010 was ₹ 15 per kg and in 2016 is ₹ 42 per kg. So, absolute change in price is ₹ 27 per kg (42-15). Relative Change: is the percentage increase or decrease between the price of a good/service in current year as compared to base year. In case of the example discussed above, the relative change in the price of sugar will be 180%, which is computed with the help of given formula,$\text{Relative change}=\frac{\text{Change in Price}}{\text{Price in BaseYear}}\times100$
$=\frac{27}{15}\times100=180\%$
Net Change: is the average of the percentage change in the prices of goods or services in the current year as compared to a base year. For example, price of sugar increases by 180% and price of oil increases by 40%. So, on a whole, the net change in prices is 110% $\bigg[\frac{180+40}{2}\bigg].$

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "6 Marks Question" from Index Numbers→Index Numbers — all question types→Economics STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

What are the main objectives of tabulation? Do all tables fulfill these objectives?
→
Explain the procedure for selecting a random sample of 3 students out of 10 in your class by using random number tables.
→
What are the essential parts of a statistical table? Explain any four.
→
What is the difference between a price index and a quantity index?
→
Calculate Karl Pearson's coefficient of correlation by actual mean method:
→
Explain briefly the advantages and limitations of graphical presentation of data.
→
Define market demand. Explain the factors that affect it.
→
Find the mean deviation and its coefficient from the given data.
Class lnterval Frequency (f)
17.5-22.5 2
22.5-27.5 4
27.5-32.5 6
32.5-37.5 8
37.5-42.5 6
42.5-47.5 4
47.5-52.5 2
52.5-57.5 2
→
Explain the average and marginal revenue curves of a firm under perfect competition.
→
Any transaction which involves money But is associated with Economics. Defend or refute. Justify your answer.
→