The measure and adjustment of price levels for goods and services across a broad sector of the economy is called as:

This question was previously asked in
SSC JE Civil 14 Nov 2022 Shift 1 Official Paper
View all SSC JE CE Papers >
  1. rationalisation
  2. depreciation
  3. indexation
  4. escalation

Answer (Detailed Solution Below)

Option 3 : indexation
Free
Building Materials for All AE/JE Civil Exams Mock Test
15 K Users
20 Questions 20 Marks 20 Mins

Detailed Solution

Download Solution PDF

Explanation:

Rationalisation:

  • Rationalization is the process of converting a pre-existing workflow to a workflow that is more goal-oriented and based on a specific set of rules.
  • Asset rationalization is the process of reorganizing a company's assets in order to improve and boost operating efficiency.

Depreciation:

  • Depreciation is a reduction in the value of the asset with the passage of time.
  • Generally, the decline in the value of the asset is due to wear and tear deterioration or obsolescence.

Indexation:

  • Indexation is the process or technique through which the Government or Organization adjusts the purchase price of an asset to account for inflation between the time you bought and sold it. In simple words, indexation allows you to increase the purchase price depending on the inflation rate in the economy.
  • Indexation can be done to adjust for the effects of inflation, cost of living, or input prices over time, or for different prices and costs in different geographic regions.
  • Indexation is often used to raise wages in inflationary environments, where failure to negotiate regular wage increases will result in real wage cuts for workers.

Escalation:

  • Escalation refers to a persistent (or sustained) rise in the price of specific commodities, goods, or services due to a combination of inflation, supply and demand, and other effects such as environmental, geological, and engineering changes.

Hence, the measure and adjustment of price levels for goods and services across a broad sector of the economy are called indexation.

Latest SSC JE CE Updates

Last updated on May 28, 2025

-> SSC JE notification 2025 for Civil Engineering will be released on June 30. 

-> Candidates can fill the SSC JE CE application from June 30 to July 21.

-> The selection process of the candidates for the SSC Junior Engineer post consists of Paper I, Paper II, Document Verification, and Medical Examination.

-> Candidates who will get selected will get a salary range between Rs. 35,400/- to Rs. 1,12,400/-.

-> Candidates must refer to the SSC JE Previous Year Papers and SSC JE Civil Mock Test, SSC JE Electrical Mock Test, and SSC JE Mechanical Mock Test to understand the type of questions coming in the examination.

-> The Staff Selection Commission conducts the SSC JE exam to recruit Junior Engineers in different disciplines under various departments of the Central Government.

More Engineering Economy and Equipments Questions

Get Free Access Now
Hot Links: online teen patti real money teen patti royal - 3 patti dhani teen patti