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index number MCQs

Practise focused index number questions with marked answers for exam preparation and subject revision.

index number Mcqs
1. Weighted Index number can be classified into _________ categories?
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A. Five

B. Two

C. Four

D. Three

2. Link relative = ________________?
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A. Pn/Po x10

B. Pn/Po x100

C. None of these

D. Pn/pn-1 x100
3. The Laspeyres and Paasche index are examples of_________________?
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A. Weighted index numbers

B. Aggregate index numbers

C. Weighted quantity index only

D. Weighted price index only

4. Consumer price Index Number also called _________ is designed to measure changes?
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A. Cost Living Index number

B. weighted Index Number

C. Consumer Index Number

D. Whole Sale Index number

5. Measure the change in quantity of goods are called ________________?
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A. Simple 1. No.

B. Appropriate

C. Quantity Index Number

D. Aggregative 1. No.

6. All Index numbers are not suitable for all _________________?
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A. Chain relative

B. Kind

C. Purpose

D. Price

7. The ratio of a new price to the base year price is called the___________?
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A. Price decrease

B. Price increase

C. Price relative

D. Price absolute

8. Fishers ideal index number is also obtained by _______________?
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A. Taking A.M. of Laspeyres and Paasches index

B. Taking G.M. of Laspeyres and Paasches index

C. Both (a) and (b)

D. None of these

9. Average calculated used in index number by __________ method?
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A. Four

B. One

C. Three

D. Two

10. A simple aggregate quantity index is used to______________?
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A. Measure the overall change in price of a range of products

B. Measure the change in quantity of product

C. Measure the change in price of a product

D. Measure the overall change in quantity of range of product.

11. Price in proceeding year used in the method is called __________?
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A. Fixed Method

B. Chain Method

C. Aggregation Method

D. Volume

12. The index number of base period is always:_______________?
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A. None of these

B. 200

C. The price of that year

D. 100
13. Volume index in Marshall is _______________?
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A. ?pn(qo + qn)/?pn

B. ?pn(Po + Pn)/ ?pn (Po + Pn)

C. ?qn(qo + qn)/?qn(po + pn) x100

D. ?qn(Po + Pn)/ ?qo (Po + Pn) x100
14. CPI also named as__________?
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A. Household price index

B. Retail price index

C. Both a and b

D. None of these

15. G.M. between __________ is called to be Fishers Index Number?
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A. Fisher and Paasches

B. Paasches Index Number

C. Marshall and Laspeyres

D. Laspeyres and Paasches
16. Most commonly used index number is___________?
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A. Value index number

B. None of these

C. Quantity index number

D. Price index number
17. The object of Index number also determines its _______________?
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A. Special purpose

B. Reliable

C. Scope

D. Index Number

18. An Index number of an average quality of wheat in Lahore__________ Index?
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A. Weighted Index Number

B. value Index Number

C. Volume Index Number

D. Quantity Index Number
19. 1. Nos. is a ____ for measuring changes in a variable or a group of related variables?
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A. variable

B. Cost

C. Region of goods

D. Device
20. The Laspeyres price index_____________?
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A. Regards the base year quantities as fixed

B. non of these

C. Regards the current year quantities as fixed

D. Regards the base year price as fixed

21. The Index number are used to measure seasonal and cyclical variations in ____________?
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A. Wholesale

B. Relatives

C. Time series

D. commodities

22. Qon means _________ for the given year?
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A. Commodity

B. Quantity Index

C. Price

D. Quantity in current

23. Base year quantities are used as weights in _______________?
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A. Fishers index

B. None of these

C. Laspeyres index

D. Paasches index

24. Volume Index in Marshall is ____________?
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A. ?Pn(qo + qn)/?Pn

B. ?Pn(Po + Pn)/?Pn(Po + Pn) x100

C. ?Pn(Po + Pn)/?Pn(Po + Pn)

D. Non of these

25. A simple aggregate price index_____________?
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A. Ignores relative quantities

B. Compares absolute prices to absolute quantities

C. Compares relative quantities to relative prices

D. Compares relative quantities

26. The index numbers are used to measure seasonal and cyclical variations in __________?
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A. Commodities

B. Time Series

C. Realtives

D. Whole sale

27. An Index number which measure the change of a _____ is called Aggregative 1. No?
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A. Industrial activity

B. Goods consumed

C. Cost of living

D. Retail price

28. An Index Number calculated for more than one items is called ___________?
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A. Consumer Index Number

B. Sensitive Price Index number

C. Simple Aggregation 1. Number

D. Chain Indices

29. In Chain base method, the base period is ________________?
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A. Change

B. None of these

C. Constant

D. Fixed

30. In CPI household budget method also known as:_____________?
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A. All of above

B. Average of weights

C. Weighted average of relatives

D. Simple average of relatives

31. Which of the formula is used in chain indices: ________________?
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A. ?pn/?po x100

B. pn/po x100

C. pn/pn-1 x100

D. Both (a) and (b) but not (c)

32. An index number is used______________?
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A. To measure changes in a variable over time

B. To measure changes in quantity

C. To measure changes in price

D. To measure changes in demand

33. The formula ?pnqn/poqn x100 is used to calculate?
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A. The Laspeyres price index

B. The Paasche quantity index

C. The Paasche price index

D. The Laspeyres quantity index

34. The formula ?poqn/?poqo x100 is used to calculate_______________?
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A. The Laspeyres quantity index

B. The Laspeyres price index

C. The Paasche price index

D. The Paasche quantity index

35. The weighty system changed with _______________?
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A. Basely

B. Yearly

C. Averagely

D. Timely
36. Link relative = ________________?
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A. Pn/ Pn-1 x100

B. Pn/P1 x 100

C. Pn/Po x 100

D. Pn/Po x 100

37. This index measure the change from month to month in the cost of a representative basket of goods and services of the type bought by a typical household?
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A. Financial time Index

B. Laspeyres Price Index

C. Retail Price Index

D. Paasche Price Index
38. A scaling factor is used to_________________?
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A. Convert the Paasche index to a Laspeyres index

B. Change the base year

C. Change a simple index to a weight index

D. change an aggregate index to a weighted index

39. Ratio between given year and base year is called __________ in percentage?
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A. Price relative

B. Link relative

C. Retail prices

D. None of these

40. Paasches Index number is ______________?
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A. ?pnqn/?poqo

B. ?pnqo/?poqo

C. ?pnqn/?poqn x100

D. ?pnqo/?pnqo x100

41. Index Number is an important role in the field of Economic and ________________?
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A. Science

B. Business

C. Education

D. Intelligence

42. Single number which shows ___________ changes in a phenomenon is called an Index Number?
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A. Variation

B. Overall

C. Same

D. Capable