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Fisher's ideal index number is

A. Arithmetic mean of Laspeyre's and Paasche's index

B. Harmonic mean of Laspeyre's and Paasche's index

C. Geometric mean of Laspeyre's and Paasche's index

D. None of the above

Answer: Option C

Solution(By Examveda Team)

Fisher's Ideal volume index is the geometric mean of the Laspeyres and Paasche volume indices. A measure of change in volume from period to period. It is calculated as the geometric mean of a chain Paasche volume index and a chain Laspeyres volume index.

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Related Questions on Economics

Which among the following statement is INCORRECT?

A. On a linear demand curve, all the five forms of elasticity can be depicted

B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.

C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.

D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.