MCQs Index Numbers Quiz 5

1. Paasche’s price index number is

2. Fisher index number is _______ of Laspeyres and Paasche’s index numbers

3. Which of the following statements about the base time is/are correct?

4. Computing methods of consumer’s price index are

5. Express the following average weekly wages as index numbers with base 1998 to 1 dp

6. Current year quantities are used as weights in

7. Calculate the required index, using the formula $100\times \left(\frac{\Sigma wP_1}{\Sigma wP_0}\right)$ giving your answer to one dp.

8. In 2000, a retail price index was 178 with 1990 = 100. Convert a weekly wage of $400 back to 1990 constant prices, giving your answer correct to the nearest penny.

9. Complete the following table which shows two index number series being spliced together to give a single series based on 1997. Give your answers correct to one dp.

10. The aggregate expenditure method and family budget method give

11. The index number given by $\frac{\Sigma p_nq_0}{\Sigma p_0q_0}\times 100$ is

12. Which method of construction of CPI number is the Laspeyres index number

13. If a price index is 104, which of the following statements is/are correct about average prices?

14. Complete the following table in which a chain-based index is being converted to one with a fixed base 1997. Give your answers correct to one decimal place.

15. Another name of consumer price index number is

16. Base year weighted index numbers are

17. If $\Sigma p_1q_0=403$, $\Sigma p_0q_0=283$, then index number is

18. If the price index ($100\times \left(\frac{\Sigma wP_1}{\Sigma wP_0}\right)$) calculated was 104, estimate the budget for the next quarter, giving your answer to the nearest $\$000$. You are assisting with the work on a maintenance department’s budget for the next quarter of 2000. The maintenance department’s budget for the current quarter (just ending) is $\$200,000$. Its use of materials, and their respective prices, are shown below.

19. Retail price index numbers are also called

20. You are assisting with the work on a maintenance department’s budget for the next quarter of 2000. The maintenance department’s budget for the current quarter (just ending) is $200,000. Its use of materials, and their respective prices, are shown below.

You require an all-item price index for materials for the next quarter, using the current quarter as a base and the current quantities as weights. Complete the table by filling in the appropriate numerical value in the spaces indicated by the letters.