An index number primarily measures which type of change?
Correct answer: B. Relative change over time or place
- A. Absolute change in one variable
- B. Relative change over time or place
- C. Association between two variables
- D. Variation around an average
Explanation
An index number expresses the relative change in a variable or group of variables, usually with the base period set equal to 100. Absolute change gives the actual difference, not the proportional movement.
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