Yes, I do agree with this statement. Index numbers are very useful in economics and business and are used as powerful tools to measure the changes in various phenomena over a period of time like; measuring changes in the cost of living, wholesale prices, industrial production, exports, etc.
Uses of Index Numbers are:
- They help in the study of trends.
- They act as an economic barometer.
- They measure the purchasing power of money.
- They help to adjust national income.
- They provide guidelines for formulating policies and arriving at decisions. Hence, Index numbers are very useful in economics and business.
