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Question
Write any two uses of cost of living index number.
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Solution
Uses of cost of living index number:
(i) It is used in wage negotiations, dearness allowance, bonus etc., to the workers.
(ii) The cost of living index number measures the change in the retail prices of a specified quantity of goods and services.
(iii) It is also useful to the government in framing policies relating to wages.
(iv) It is used as measures of change in the purchasing power of money and real income.
(i) It is used in wage negotiations, dearness allowance, bonus etc., to the workers.
(ii) The cost of living index number measures the change in the retail prices of a specified quantity of goods and services.
(iii) It is also useful to the government in framing policies relating to wages.
(iv) It is used as measures of change in the purchasing power of money and real income.
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