Introduction To Index Number CBSE Questions & Answers

Introduction To Index Number

This is Economics Class 11 Introduction to Index Number CBSE Questions & Answers. There are 15 questions in this test with each question having around four answer choices.

Questions & Answers

1
The base year for index numbers should be…………..
  • A
    normal period
    Correct
  • B
    none
  • C
    a year only
  • D
    a period at distant part
2
Commodities which show considerable price fluctuations could be best measured by a…………….
  • A
    quantity index
    Correct
  • B
    quality
  • C
    value index
  • D
    price index
3
Comparison is made between base year and is called index number of prices
  • A
    actual year
  • B
    current year
    Correct
  • C
    past year
  • D
    none
4
Suppose we want to know the average changes in the price of a set of commodities in 2010 with respect to the prices of same set of commodities in 2008. In this case what will be the base year?
  • A
    2008.0
    Correct
  • B
    2010
  • C
    2000
  • D
    None
5
………….. reflects on the price change experienced by families of people.
  • A
    consumer price index
    Correct
  • B
    none
  • C
    whole sale price index
  • D
    weighted average price
6
Index Number reveals the state of
  • A
    Both
    Correct
  • B
    Inflation
  • C
    Deflation
  • D
    None
7
From the following which is not a kind of index number
  • A
    Quality
    Correct
  • B
    quantity
  • C
    value
  • D
    price
8
Index numbers may be constructed to reflect percentage changes in …………..
  • A
    All of these
    Correct
  • B
    prices
  • C
    wages
  • D
    transport costs
9
In index number current year quantity is denoted by ……………
  • A
    q1
    Correct
  • B
    q0
  • C
    p0
  • D
    p1
10
From the following which is not a problem in the construction of Index numbers?
  • A
    selection of commodities
  • B
    understanding of the purpose
  • C
    selection of base
  • D
    selection of price
    Correct
11
The price relative is a price index that is determined by
  • A
    none of the above
  • B
    (price in period t + base period price)(100)
  • C
    price in period t/base period price)(100)
    Correct
  • D
    (base period price/price in period t)(100)
12
A composite price index based on the prices of a group of items is known as the
  • A
    Aggregate price index
    Correct
  • B
    CPI
  • C
    Laspeyres Index
  • D
    Paasche Index
13
A weighted aggregate price index where the weight for each item is its base period quantity is known as the
  • A
    Laspeyres Index
    Correct
  • B
    Paasche Index
  • C
    Producer Price Index
  • D
    CPI
14
A monthly price index that uses the price changes in consumer goods and services for measuring the changes in consumer prices over time is known as the
  • A
    IIP
  • B
    CPI
    Correct
  • C
    Laspeyres Index
  • D
    Paasche Index
15
A monthly price index that measures the changes in the prices of goods sold in a primary market is known as the
  • A
    Quantity index
  • B
    Index of Industrial Production
  • C
    Producer Price Index
    Correct
  • D
    CPI