MCQs Index Numbers Quiz 2

Multiple Choice Questions from Introductory Statistics for the preparation of exams and different tests. This page includes the Index Numbers quiz for the preparation of different statistics and job-related examinations. Lets us start with the MCQs index numbers quiz, which is the second quiz of MCQs index numbers.

MCQs about Index Numbers

1. The index numbers are used to measure the changes in the price of commodities is called

 Price index number

 Quantity index number

 Consumer’s price index numbers

 Quantity index number

2. In chain base methods the base period is:

 Changed

 Fixed

 Constant

 None of these

3. For calculating weighted index numbers, which of the following method useful quantities consumed in the base period as weight:

 Fisher method

 Paasche’s method

 Palgrave’s method

 Lespeyre’s method

4. Consumer’s price index numbers are calculated by:

 Fisher’s formula

 Paasche’s formula

 Palgrave’ formula

 Laspeyre’s formula

5. All values of equal importance are used in calculating an index, the index is called:

 Simple Index

 Composite Index

 Weighted Index

 Unweighted Index

6. $P_{on} = \frac{\Sigma p_n q_n}{\Sigma p_0 q_n}\times 100$ is the formula of:

 Lespeyre’s index numbers

 Paasche’s index numbers

 Fisher’s index numbers

 Marshall-Edgeworth index

7. A relative obtained by dividing the price in a given year by price in proceeding year and expressed as a percentage is called:

 Price relative

 Volume relative

 Link relatives

 None of these

8. The Basic types of index numbers are:

 Six

 Five

 Three

 Two

9. The weights used in a quantity index are:

 Prices

 Quantities

 Values

 None of these

10. The variation in two or more variables studies by the index is called:

 Composite index

 Simple index

 Price index

 None of these

11. An index number that can serve many purposes is called

 Simple index number

 Special purpose index

 General purpose index

 Consumer price

12. In simple price index numbers, the base period is

 Changed

 Fixed

 Constant

 None of these

13. In Laspeyre’s Price Index, the quantities uses weight related to

 Current year

 Base year

 Both current and base year

 None of these options

14. A relative obtained by dividing the price in a given year price in the base year and expressed as a percentage is called:

 Link relatives

 Price relatives

 Volume index

 None of these

15. The index number for the base year is

 200

 100

 50

 10

16. Time reversal test is satisfied by

 Paasche’s index

 Lespeyre’s index

 Fisher’s index

 None of these

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• Construction of Index Numbers which follows steps (i) Object of Index Number, (ii) Choice of items, (iii) Choice of Base Period, (iv) Collection of Prices of Items, (v) Choice of Average, (vi) Selection of Proper Weights
• Fixed Base Method
• Chain Base Method
• Composite Index Numbers
• Un-Weighted Index Numbers which includes (i) Simple Aggregative Index Numbers, (ii) Simple Average of Relatives Index Numbers
• Weighted Index Numbers which includes (i) Weighted Aggregative Index Numbers, (ii) Weighted Average of Relatives Index Numbers
• The Weighted Aggregative Index Numbers includes (i) Laspeyre’s Index Number, (ii) Paasche’s Index Number, (iii) Fisher Idea Index Number, Value Index Number,
• Consumer Price Index Numbers. The important steps in the construction of CPI numbers which includes (i) Choosing the class of people, (ii) Selection of commodities, (iii) Budget Inquiry, (iv) Collection of Prices, (v) Calculation of CPI Numbers