Important MCQs Index Numbers 1

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

1. Paasche’s price index number is also called

2. In the chain base method, the base period is

3. _______ method uses quantities consumed in the base period when computing a weighted index

4. In the fixed base method, the base period should be

5. An index number computed for a single commodity is called

6. If Laspeyre’s index number is 200, and Paasche’s index number is 200 then the Fisher index number will be

7. The most suitable average for index numbers is

8. The index number having an upward bias is

9. The commodities subject to considerable price variations can be best measured by

10. Long-term variations are regarded as

11. The __________ index number has a wide scope

12. The index number that can be used for multi-purpose is:

13. The price used in the construction of consumer price index numbers is

14. The chaining process used to make a comparison of the index number is

15. The index give by $\frac{\sum p_n q_n}{\sum p_0 q_0}\times 100$

16. Index numbers are free from a unit of measurement because the index number shows

17. The price relative formula is $\frac{?}{P0}\times 100$

18. Increased demand for coolers in summer and heaters in winter is an example of

19. Price relatives computed for the chain base method are called

20. The index for the base period is always taken as

• Construction of Index Numbers 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 include (i) Simple Aggregative Index Numbers, (ii) Simple Average of Relatives Index Numbers
• Weighted Index Numbers which include (i) Weighted Aggregative Index Numbers, (ii) Weighted Average of Relatives Index Numbers
• The Weighted Aggregative Index Numbers include (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 include (i) Choosing the class of people, (ii) Selection of commodities, (iii) Budget Inquiry, (iv) Collection of Prices, (v) Calculation of CPI Numbers

MCQs Index Numbers

• The index number that can be used for multi-purpose is:
• An index number computed for a single commodity is called
• The __________ index number has a wide scope
• The price relative formula is $\frac{?}{P0}\times 100$
• The index for the base period is always taken as
• In the fixed base method, the base period should be
• The commodities subject to considerable price variations can be best measured by
• In the chain base method, the base period is
• The chaining process used to make a comparison of the index number is
• Price relatives computed for the chain base method are called
• The most suitable average for index numbers is
• Index numbers are free from a unit of measurement because the index number shows
• Long-term variations are regarded as
• Paasche’s price index number is also called
• The index number having an upward bias is
• The index give by $\frac{\sum p_n q_n}{\sum p_0 q_0}\times 100$
• If Laspeyre’s index number is 200, and Paasche’s index number is 200 then the Fisher index number will be
• Increased demand for coolers in summer and heaters in winter is an example of
• The price used in the construction of consumer price index numbers is
• __________ method uses quantities consumed in the base period when computing a weighted index

Learn about Index numbers

R Language Introduction and Lecture Notes

Online MCQs Test Website

2 thoughts on “Important MCQs Index Numbers 1”

1. Mcqs # 10 and 19 arevwrong answers plz chck it.

Reply
• Dear!
The questions in quiz are generated randomly. Therefore, it becomes difficult to identify wrong question on the basis of just question number. It will be helpful if you provide at least the statement of the wrong question.

Thank your for visitng and sharing your comment.

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