Question

State with reason whether you agree or disagree with the following statement:

The quantity index number is one type of index number.

Options

• Agree

• Disagree

Answer 1

I agree with the above statement.

Reasons:

1. Another name for the quantity index number is the volume index number. It tracks variations in the economy's physical volume of production or output level across time. For instance, variations in the output of agriculture during a given time frame, such as 2020-2021.
2. The ratio of the total quantities of different items in the base year and the total quantities of different goods in the current year is multiplied by 100 to get the quantity index number.
3. The formula for measuring quantity index number is as follows: Quantity Index Number `"Q"_{01} = (sum"q"_1)/(sum"q"_0) xx 100`

Consequently, one kind of index number is the quantity index number.