Important MCQs Index Number Test 3

The post is about the MCQs Index Number Test. There are 20 multiple-choice questions covering topics related to the construction of index numbers, average and aggregate index numbers, simple index numbers, weighted index numbers, price relative index numbers, and chain base methods. Let us start with the MCQs Index Number Test.

Online Multiple Choice Questions about Index Numbers

1. A base period can be described as a normal period if:

 It must be the most recent period for which we have data

 It is neither the peak nor the trough of a fluctuation

 Option (a) and (c)

 There was no inflation or deflation of prices during the period

2. When the base year values are used as weights, the weighted average of the relative price index is the same as

 The Paasche’s index

 The unweighted average of the relative price index

 None of these

 The Laspeyer’s index

3. Which of the following describes the advantage of using the Laspeyer’s method?

 Option (a) and (c) but not (b)

 Many commonly used quantity measures are not tabulated for every period

 One index can be easily compared

 Changes in consumption patterns are taken into account

4. To measure how much the cost of some variable changes over time, we would use

 Value index

 Quantity index

 None of these

 Inflation index

5. The Circular test is satisfied by:

 Paasche’s Index

 Laspeyres’ Index

 None of these

 Fisher’s Index

6. Which of the following indices satisfies both the time reversal and factor reversal tests?

 Laspeyres Index

 Fisher;s Index

 Paasche;s Index

 Marshall – Edge Worth

7. The consumer price index number is also known as

 The weighted index

 The wholesale price index

 Simple index

 The cost of living index

8. The weights used in a quantity index are:

 None of these

 Percentages of the total quantity

 Average of quantities

 Prices

9. When computing a weighted average of the relative index, we would be best able to compare indices from various periods if:

 Base values were used as $p_nq_n$

 Either base or fixed values were used as $p_nq_n$

 Current values were used as $p_nq_n$

 Fixed vlaues were used as $p_nq_n$

10. To measure changes in total monetary worth, one should compute:

 Quantity index

 Price index

 Value index

 Consumer price index

11. Commodities subject to considerable price variation should best be measured by:

 None of the option

 An Inflation Index

 Quantity Index

 Value Index

12. If an index number calculations over 8 years with a base value of 100 gave an index for 2015 of 120, what would be the percentage relative for 2015?

 200

 12

 100

 120

13. How many steps are involved in the construction of the index number of prices:

 Five

 Three

 Six

 Four

14. Which of the following indexes has a downward bias?

 Marshall-Edgeworth index

 Fisher’s index

 Lespeyre’s index

 Paasche’s index

15. Which method of construction of consumer price index number is the Laspeyres’ index number?

 Aggregate Expenditure Method

 Simple Index Numbers

 Ratios

 Family Budget Method

16. The prices used in the construction of consumer price index numbers are:

 The Wholesale Prices

 The Simple Index Numbers

 The Fixed Prices

 The Retail Prices

17. Depression in a business is?

 Cyclical

 Irregular

 Secular

 Seasonal

18. The circular test is satisfied for

 Fisher’s index

 None of these

 Lespeyre’s index

 Paasche’s index

19. Commodities subject to considerable price variations could best be measured by

 Price index

 Value index

 Consumer price index

 Quantity index

20. A primary difference between the average of relatives and aggregate methods is that

 Average of relatives methods sum all prices before finding the ratio

 Aggregate methods sum all prices before finding the ratio

 Aggregates methods are useful only for price indices

 Option (a) and (c) but not (b)

(adsbygoogle = window.adsbygoogle || []).push({});

 Loading …

Online MCQs Index Number Test

(adsbygoogle = window.adsbygoogle || []).push({});

• How many steps are involved in the construction of the index number of prices:
• The circular test is satisfied for
• Which of the following indexes has a downward bias?
• The consumer price index number is also known as
• To measure changes in total monetary worth, one should compute:
• If an index number calculations over 8 years with a base value of 100 gave an index for 2015 of 120, what would be the percentage relative for 2015?
• Which of the following describes the advantage of using the Laspeyer’s method?
• When computing a weighted average of the relative index, we would be best able to compare indices from various periods if:
• Commodities subject to considerable price variations could best be measured by
• A primary difference between the average of relatives and aggregate methods is that
• A base period can be described as a normal period if:
• The weights used in a quantity index are:
• To measure how much the cost of some variable changes over time, we would use
• When the base year values are used as weights, the weighted average of the relative price index is the same as
• Depression in a business is?
• Which method of construction of consumer price index number is the Laspeyres’ index number?
• The prices used in the construction of consumer price index numbers are:
• The Circular test is satisfied by:
• Which of the following indices satisfies both the time reversal and factor reversal tests?
• Commodities subject to considerable price variation should best be measured by:

https://rfaqs.com, https://gmstat.com