2.1.

3 Uses of index numbers

Year 1 content

With reference to the article and your

understanding of economic data explain why
index numbers are used to illustrate change.

This topic could be used at the end to revise key concepts.

 2.1.3 What you need to know

 How index numbers are calculated and

interpreted, including the base year and
use of weights
 How index numbers are used to measure
changes in the price level and changes in
other economic variables
 2.1.3 Year 1 Recap:

 How do you calculate an index number?

 What is meant by the term base year?
 What is meant by a “weight”?
 How are index numbers typically used in
Economics?