index number MCQs – Page 2

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

index number Mcqs
21. The Index number are used to measure seasonal and cyclical variations in ____________?
comments icon0

A. Wholesale

B. Relatives

C. Time series

D. commodities

22. Qon means _________ for the given year?
comments icon0

A. Commodity

B. Quantity Index

C. Price

D. Quantity in current

23. Base year quantities are used as weights in _______________?
comments icon0

A. Fishers index

B. None of these

C. Laspeyres index

D. Paasches index

24. Volume Index in Marshall is ____________?
comments icon0

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_____________?
comments icon0
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 __________?
comments icon0

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?
comments icon0

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 ___________?
comments icon0

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 ________________?
comments icon0
A. Change

B. None of these

C. Constant

D. Fixed

30. In CPI household budget method also known as:_____________?
comments icon0

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: ________________?
comments icon0

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______________?
comments icon0
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?
comments icon0

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_______________?
comments icon0
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 _______________?
comments icon0

A. Basely

B. Yearly

C. Averagely

D. Timely
36. Link relative = ________________?
comments icon0
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?
comments icon0

A. Financial time Index

B. Laspeyres Price Index

C. Retail Price Index

D. Paasche Price Index
38. A scaling factor is used to_________________?
comments icon0

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?
comments icon0
A. Price relative

B. Link relative

C. Retail prices

D. None of these

40. Paasches Index number is ______________?
comments icon0

A. ?pnqn/?poqo

B. ?pnqo/?poqo

C. ?pnqn/?poqn x100

D. ?pnqo/?pnqo x100