A desirable technical property of an index number is that its value should not change merely because the units of measurement change. This property is called the:
Correct answer: A. Unit test
- A. Unit test
- B. Circular test
- C. Factor reversal test
- D. Time reversal test
Explanation
The unit test requires an index to remain unchanged when units such as kilograms or grams are substituted consistently. The circular and reversal tests concern relationships across periods or between price and quantity indices.
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