Index Number MCQs

Option A: Simple average of relatives

Option B: Average of weights

Option C: Weighted average of relatives

Option D: All of above

Correct Answer: Weighted average of relatives ✔

Option A: Household price index

Option B: Retail price index

Option C: Both a and b

Option D: None of these

Correct Answer: Both a and b ✔

Option A: Quantity index number

Option B: Price index number

Option C: Value index number

Option D: None of these

Correct Answer: Price index number ✔

Option A: The Laspeyres price index

Option B: The Paasche price index

Option C: The Paasche quantity index

Option D: The Laspeyres quantity index

Correct Answer: The Paasche quantity index ✔

Option A: Regards the base year quantities as fixed

Option B: Regards the base year price as fixed

Option C: Regards the current year quantities as fixed

Option D: non of these

Correct Answer: Regards the base year quantities as fixed ✔

Option A: Laspeyres Price Index

Option B: Financial time Index

Option C: Paasche Price Index

Option D: Retail Price Index

Correct Answer: Paasche Price Index ✔

Option A: Measure the change in quantity of product

Option B: Measure the overall change in price of a range of products

Option C: Measure the overall change in quantity of range of product.

Option D: Measure the change in price of a product

Correct Answer: Measure the overall change in price of a range of products ✔

Option A: To measure changes in quantity

Option B: To measure changes in price

Option C: To measure changes in a variable over time

Option D: To measure changes in demand

Correct Answer: To measure changes in a variable over time ✔

Option A: Taking A.M. of Laspeyre’s and Paasche’s index

Option B: Taking G.M. of Laspeyre’s and Paasche’s index

Option C: Both (a) and (b)

Option D: None of these

Correct Answer: B. Taking G.M. of Laspeyre’s and Paasche’s index ✔

Option A: Laspeyre’s index

Option B: Paasche’s index

Option C: Fisher’s index

Option D: None of these

Correct Answer: A. Laspeyre’s index ✔

Option A: ∑pn(Po + Pn)/ ∑pn (Po + Pn)

Option B: ∑qn(qo + qn)/∑qn(po + pn) x100

Option C: ∑pn(qo + qn)/∑pn

Option D: ∑qn(Po + Pn)/ ∑qo (Po + Pn) x100

Correct Answer: ∑qn(Po + Pn)/ ∑qo (Po + Pn) x100 ✔

Option A: Wholesale

Option B: Relatives

Option C: commodities

Option D: Time series

Correct Answer: Time series ✔

Option A: Yearly

Option B: Basely

Option C: Timely

Option D: Averagely

Correct Answer: Timely ✔

Option A: Pn/Po x 100

Option B: Pn/Po x 100

Option C: Pn/ Pn-1 x100

Option D: Pn/P1 x 100

Correct Answer: Pn/ Pn-1 x100 ✔

Option A: Overall

Option B: Same

Option C: Variation

Option D: Capable

Correct Answer: Overall ✔

Option A: Industrial activity

Option B: Retail price

Option C: Cost of living

Option D: Goods consumed

Correct Answer: Cost of living ✔

Option A: Index Number

Option B: Special purpose

Option C: Reliable

Option D: Scope

Correct Answer: Scope ✔

Option A: Three

Option B: Two

Option C: Four

Option D: One

Correct Answer: Three ✔

Option A: Paasche’s Index Number

Option B: Marshall and Laspeyr’es

Option C: Laspeyre’s and Paasche’s

Option D: Fisher and Paasche’s

Correct Answer: C. Laspeyre’s and Paasche’s ✔

Option A: Volume Index Number

Option B: value Index Number

Option C: Quantity Index Number

Option D: Weighted Index Number

Correct Answer: Quantity Index Number ✔

Option A: Cost Living Index number

Option B: Whole Sale Index number

Option C: weighted Index Number

Option D: Consumer Index Number

Correct Answer: Cost Living Index number ✔

Option A: Kind

Option B: Chain relative

Option C: Purpose

Option D: Price

Correct Answer: Purpose ✔

Option A: Change a simple index to a weight index

Option B: Convert the Paasche index to a Laspeyres index

Option C: Change the base year

Option D: change an aggregate index to a weighted index

Correct Answer: Change the base year ✔

Option A: The Laspeyres price index

Option B: The Paasche quantity index

Option C: The Laspeyres quantity index

Option D: The Paasche price index

Correct Answer: The Laspeyres quantity index ✔

Option A: Aggregate index numbers

Option B: Weighted index numbers

Option C: Weighted price index only

Option D: Weighted quantity index only

Correct Answer: Weighted index numbers ✔

Option A: Ignores relative quantities

Option B: Compares relative quantities to relative prices

Option C: Compares absolute prices to absolute quantities

Option D: Compares relative quantities

Correct Answer: Ignores relative quantities ✔

Option A: Price decrease

Option B: Price absolute

Option C: Price increase

Option D: Price relative

Correct Answer: Price relative ✔

Option A: 100

Option B: 200

Option C: The price of that year

Option D: None of these

Correct Answer: 100 ✔

Option A: ∑pn/∑po x100

Option B: pn/po x100

Option C: pn/pn-1 x100

Option D: Both (a) and (b) but not (c)

Correct Answer: pn/pn-1 x100 ✔

Option A: ∑pnqo/∑poqo

Option B: ∑pnqo/∑pnqo x100

Option C: ∑pnqn/∑poqo

Option D: ∑pnqn/∑poqn x100

Correct Answer: ∑pnqo/∑poqo ✔

Option A: Pn/pn-1 x100

Option B: Pn/Po x10

Option C: Pn/Po x100

Option D: None of these

Correct Answer: Pn/pn-1 x100 ✔

Option A: Fixed

Option B: Constant

Option C: Change

Option D: None of these

Correct Answer: Change ✔

Option A: ∑Pn(Po + Pn)/∑Pn(Po + Pn)

Option B: ∑Pn(qo + qn)/∑Pn

Option C: ∑Pn(Po + Pn)/∑Pn(Po + Pn) x100

Option D: Non of these

Correct Answer: ∑Pn(Po + Pn)/∑Pn(Po + Pn) ✔

Option A: Price

Option B: Commodity

Option C: Quantity in current

Option D: Quantity Index

Correct Answer: Quantity Index ✔

Option A: Science

Option B: Education

Option C: Intelligence

Option D: Business

Correct Answer: Business ✔

Option A: variable

Option B: Region of goods

Option C: Device

Option D: Cost

Correct Answer: Device ✔

Option A: Simple 1. No.

Option B: Aggregative 1. No.

Option C: Appropriate

Option D: Quantity Index Number

Correct Answer: Quantity Index Number ✔

Option A: Fixed Method

Option B: Chain Method

Option C: Aggregation Method

Option D: Volume

Correct Answer: Chain Method ✔

Option A: Four

Option B: Three

Option C: Five

Option D: Two

Correct Answer: Two ✔

Option A: Price relative

Option B: Link relative

Option C: Retail prices

Option D: None of these

Correct Answer: Price relative ✔

Option A: Sensitive Price Index number

Option B: Consumer Index Number

Option C: Simple Aggregation 1. Number

Option D: Chain Indices

Correct Answer: Simple Aggregation 1. Number ✔

Option A: Commodities

Option B: Time Series

Option C: Whole sale

Option D: Realtives

Correct Answer: Time Series ✔