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Class 11 Economics MCQ Chapter 7 Index Numbers
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Index Numbers
Chapter: 7
PART – (A) STATISTICS FOR ECONOMICS
| MCQ |
1. Index numbers are also called the barometer of pulse of______.
(a) Statistical observations.
(b) Data calculation.
(c) Economy.
(d) None of these.
Ans: (c) Economy.
2. How are index numbers conventionally expressed?
(a) As fractions
(b) In terms of percentage.
(c) As integers.
(d) As decimals.
Ans: (b) In terms of percentage.
3. Index number for base period is taken as:
(a) 100
(b) 150
(c) 75
(d) 200
Ans: (a) 100
4. For which time period is an index number determined:
(a) Base period.
(b) Normal period.
(c) Current period.
(d) None of the above.
Ans: (c) Current period.
5. Index numbers are expressed in:
(a) Percentage.
(b) Average.
(c) Both of these.
(d) None of these.
Ans: (a) Percentage.
6. What is the weight used in a quantity index?
(a) Quantity.
(b) Quality.
(c) All of the above.
(d) None of the above.
Ans: (a) Quantity.
7. Commodities which show considerable price fluctuations could be best measured by a________.
(a) Price index.
(b) Quantity index.
(c) Value index.
(d) Quality.
Ans: (b) Quantity index.
8. Price Relatives = Current Year Price /?×100:
(a) Reference year price.
(b) Periodic year price.
(c) Base year price.
(d) Both (a) and (c).
9. The index used to measure changes in total money value is called________.
(a) Quantity index.
(b) Price index.
(c) Value index.
(d) None of these.
Ans: (c) Value index.
10. What is a ‘weighted’ index number?
(a) An index that gives equal importance to all items.
(b) An index that gives different weights to items based on their importance.
(c) An index with no base period.
(d) An index that only measures prices.
Ans: (b) An index that gives different weights to items based on their importance.
11. A consumer price index is also known as:
(a) Wholesale Price Index.
(b) Welfare Index.
(c) Cost of Living Index.
(d) None of these.
Ans: (c) Cost of Living Index.
12. The aggregate index formula using base period quantities is known as:
(a) Laspeyre’s index.
(b) Fisher’s Ideal index.
(c) Bowley’s index.
(d) Paasche’s index.
Ans: (a) Laspeyre’s index.
13. Consumer price index is used for______.
(a) Formulation of price policy.
(b) Product evaluation.
(c) Both (a) and (b).
(d) Neither (a) nor (b).
Ans: (a) formulation of price policy.
14. What is the importance of selecting a base period?
(a) It makes calculations simpler.
(b) It provides a reference point for comparison.
(c) It reduces the price index.
(d) It makes the index relative.
Ans: (b) It provides a reference point for comparison.
15. The base year for index numbers should be_________.
(a) A normal period.
(b) A year only.
(c) A period at a distant part.
(d) None of these.
Ans: (a) A normal period.
