index

Vocabulary Word

Definition

While an 'index' is often associated with a list in a book, it also refers to a sign or measure of something. For instance, in economics, an index might measure changes in prices over time.

Examples in Different Contexts

In environmental studies, 'indexes' help measure pollution levels. An environmentalist might assert, 'The air quality index indicates severe pollution in urban areas.'

Practice Scenarios

Business

Scenario:

Our investment strategy involves tracking the performance of portfolio against broader market trends.

Response:

We indeed need a solid strategy. How about using an index fund that mimics the S&P 500?

Academics

Scenario:

In studying trends in our city, we need to properly quantify the differences between various groups.

Response:

Good point, we should indeed apply an index such as the Gini coefficient to measure income inequality among groups.