Below are some of the most important questions on the "Theory of Index numbers". All questions are most likely to be asked in.
SSC, SSC CGL, SSC CHSL, UPSC, IBPS, UPPSC, RRB, RRB NTPC, RRB Group D, JKSSB, JKPSC.
And other exams like JKSSB Finance accounts assistant, vlw, forester, Jkpsi, junior assistant, Patwari, election assistant, and all other exams.
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Theory of Index Numbers -Important Questions/MCQs
The widely used
weighted index no. is
- Peaches
index
- Fisher's
ideal index
- Laspayers index
All the values of equal
status are used in calculating an index, the index No. is
- Weighted
index
- Unweighted
index
- Complex
index
- Simple
index
A relative calculated
by dividing the price in a given year price in the base year & expressed as a %age is know as.
- Link
relative
- Price relative
- Volume
index
- None of
these
Consumer price index is
a
- Paasches
index
- Laspeyres index
- Fisher
index
The base period in a chain
base method is.
- None
- Constant
- Changed
- Fixed
Person spends some
rupees on buying few house hold things, then which index would be suitable to
calculate the average of the whole expenditure.
- Consumer Price
Index
- Producer
Price Index
- Productive
Price Index
- Wholesale
Price Index
Time reversal test says
- P01×q10=1
- 0s &
1s are on subscript
- P10×q10=1
- P 01 ×p10= 1
P10 is the index for
time?
- 0 on 1
- 1 on 1
- 0 on 0
- 1 on 0
In index No. variation
in two or more variables is called
- Simple
index
- Price
index
- None
- Composite index
If index no. Of
laspayers method = 25 & Paasches method. = 100 find index no. Using
Fisher's method
- 75
- 2500
- 50
- 25
Consumer price index no.
is also called by ___name
- Rational
index No.
- Retail price
index no.
- Wholesale
price index no.
The best average for obtaining
index No.
- All of
above
- H.M
- G.M
- Am
The index for a base
period is always taken as what.
- 0
- 100
- 1000
- 1
............ Is a specific
average designed to determine the change in a group of related variables our
period of time.
- Index No.
- None of
these
- Arithmetic
mean
Price relative is equal to?
- Price in a
weird year × 100
- Price in a given
year, price in a base year × 100
- Price in a
base year, price in a given year × 100
- Price in a
base year × 100
The items included in a
Whole-sale Price Index (WPI) basket are?
- Services
- Goods
- Both a
& b
- None
Time reversal test is
satisfied by
- Marshall
index
- Fisher
index
- All of these
- Simple GM
of price relative
An index no. calculated
for a single commodity is known as
- General
Index
- Simple index
- Index
- Composite
index
An index no. determined with a single variable is called
- One
variable index
- All of
these
- Unit index
- Uni-veriate
index
Purchasing power of
money is
- Equal to
price index
- Reciprocal of price
index No.
- Unequal to
price index
Fisher index is based
on
- H.M of
laspayers & paasches index
- G.M of Marshall & paasches index
- G.M of
laspayers & paasches index
Why Fisher's price
index is called as the ideal index No.?
- Coz it is geometric mean of laspeyre's & paasche's
- Coz it satisfies both the time reversal & circular method
- Coz it satisfies both the Time reversal & the factor reversal test
- Coz it only satisfies the unit Test
Why do we need index No.?
- All the given
- Help
govt.in framing policy & determine
level of production.
- Useful in
planning & decision making.
- To study a
change in price level & living standard of peeps.
While testing the
adequacy of index No. circular test is an extension of what
- Factor
reversal test
- Time reversal test
- Unit test
In simple price index No.,
what is the base period.
- Changed
- None of
above
- Fixed
- Constant
When an index is obtained
from a group of variables, it is considered as,
- None of
these
- More
variables
- Multi
variable index
- Composite index
Which index is based on typical period of time
(quantities of which are used as weight)
- Fisher's
index
- Marshall-Edgeworth
- Laspeyre's
method
Factor reversal test is
satisfied by
- Laspayers
index
- Paasches
index
- Fishers index
Most widely used
weighted index is
- Paasches
index
- Laspeyres index
- None of
above
- Fisher
ideal Index
...... Is used by govt.
to make salary & Dearness allowances
- Retail
price index No.
- CPI
- WPI
- Both 1 & 3
Which index No. among has
a wider scope
- Special
index
- Quantity
index
- General
index
- Price index
Best Avg. for
constructing the index No. is
- Harmonic
mean
- Geometric mean
- None of
these
- Arithmetic
mean
Bowley index is based
on
- None of
these
- AM of laspayers
& paasches index
- GM of
laspayers & paasches index
Which test says product
of change in price index & change in
quantity index shoud be equal to change in value index..
- Factor reversal test
- Time
reversal test
- Circular
test
- Unit test
- Augmented
Dickey fuller test
Which of the fallowing
is a true statement regarding index No.
- Index No.
gives accurate values
- It is not
based on samples
- For
different purpose same index no. Is to be prepared
- Quality of products
is not taken into consideration
Aggregative expenditure
method Calculates CPI by?
- Laspeyre's formula
- Kelley's
formula
- Paaschey's
formula
Index No. is also known
as
-
Statistical barometer
- Signs
& guide posts
- 1 &2
- 2 &3
- Economic
barometer
Circular test of index
no. is the extension of
- Circular
test
- All of
these
- Factor
reversal test
- Time reversal test
Which index is widely
used to measure the rate of inflation (ist stage of transaction)
- Wholesale price index
- Consumer
price index or cost of living index
- Simple
average of relative
- Weighted
price index
The chain base index
numbers are not good for
-
Percentages
- Ratios
- Short
range comparisons
- Long range
comparisons
Which of the fallowing
statements is false
- Fisher method is
arithmetical mean of laspeyre's method & paasche's method
- paasche's
method is used to know the cost of basket of commodities in current year
- In
laspeyer's method quantity of base year are taken as weights
Which of the fallowing
is a limitation of index No.
- Index No.
gives approximate values
- Quality of
products is not taken into consideration
- All the above
- 1 &3
- It is based
on samples only
When Consumer Price
Index (CPI) data released?
- Every year
- None
- Every month
- Every 2
month
Index No. was first
constructed in
- 1864
- 1764
- None of
these
CPI calculated by
divide the total expenditure of the current year by the total expenditure of
the base year & multiply the resulting figure by 100. Is
- Weighted aggregate
method
- Aggregate
expenditure method
- All the above
- Lespayer's
method
Cost of living index =
- (Real
wages money wages) ×100
- Real wages
×money wages 100
- (Money wages/real
wages)×100
According to unit test
of adequacy of index No.
- Each index
no. Must have its separate unit
- They
should fallow Cgs unit system
- Index no. Should be
independent of units in which price & quantities are used
- Index No.
should fallow the SI unit system
Below equation is a
formula of which index No..
, where 
- Marshall
Edgeworth method
- Fischer
method
- Dorbesh
bowley's method
- Kelley's method
When a year to year
comparison is desired the index no's are calculated by
- Chain base
method
- Fixed base
method
- Average
base method
- None
Kelley's method of
index No. satisfies.
- 5. 2 &
3 only
- 3. Factor reversal test
- 2. Time reversal test
- 1. Circular test
- 4. 1 & 2 only
What is the base year
for obtaining inflation at whole-sale Price Index in India?
- 2014-15
- 2004-05
- 2001-02
- 2011-12
All the tests will
satisfy the unit test except
- None
- Simple
aggregate price
- Laspeyre's
index
-
Marshall-edgeworth price
Under WPI which item
has been given max weight
I. Primary items, II. Food & power, III. Manufacturing items
- Only II n
III
- Only I, II
n III
- Only I
- Only III
Formula of Dorbish & Bowley Index No..
-: 
-: 
-: 
-: 
Bowley’s Index is an
average of Laspeyre’s Index & ______.
(A) Kelly’s
Index
(B) Fisher’s
Index
(C)
Marshall-Edgeworth’s Index
(D) Paosche’s Index
For the Given
Information about Marshall- Edgeworth index no. choose the correct.
It does not
satisfy only circular test.
It does not satisfy
both factor reversal & circular test.
Satisfies
both the tests
Not satisfy
only factor reversal test
WPI was established in
- 1942
- 1945
- 1944
- 1940
Simple aggregate method
is also known by name
- All the
above
- Actual price method
- Weighted
method
- Price
relatives method
Which of the following
indices is used to determine the Dearness allowances of central state employees
- WPI- RL
- WPI- IW
- WPI- AR
- WPI- UNM
Decrease in wholesale price index shows
- Excess of
demand over price
- Excess of supply over
demand
- Both 1
&3
- Excess
demand over supply
- Both 1
&2