Which index number is used to compare cost of living at two different cities ?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Consumer price index
The consumer price index (also called the cost of living index) measures the change in the prices of the goods and services that a group of consumers buys. It is the index used to compare the cost of living at different places or at different times.
Why the other options are incorrect
Option (1) Value index — Incorrect. It compares the total value (price × quantity) of goods, not the cost of living.
Option (2) Volume index — Incorrect. It measures changes in quantities produced or consumed, not prices.
Option (3) Weighted index — Incorrect. This only says how an index is built (with weights); it is not the index for the cost of living.
Note: This topic was not in the CUET 2026 syllabus.