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QUESTION
Q
In economic field, very often, the term “Price  Index” is used.  If the Price Index in May 1985 was 355, then what does it mean ?(A) The prices on the average were more than three and a half times as much.(B) The prices were 255 per...

Solution

Only B

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price index is a measure of relative price change but not absolute values i.e. one price index value can be compared to another or a base, but the number alone...

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