Mcqs (index number)

1. MCQs
(Index Number)
NADEEM UDDIN
ASSOCIATE PROFESSOR
OF STATISTICS
https://www.slideshare.net/NadeemUddin17
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2. 1- Average change in a variable or a group of variable with respect to time is called:
a. Average b. Index Number c. Median d. None
2- In fixed base method, the base period is:
a. Fixed b. Not fixed c. Zero d. None
3- In chain base method, the base period is:
a. Not fixed b. Fixed c. Constant d. None
4- An index number is called a simple index when it is computed from:
a. Bi-variate b. Multiple variable c. Single variable d. None
5- An index number is called a composite index when it is computed from
a. Several variable b. Single variable
c. Special variable d. None

3. 6- Index for base period is always taken as:
a. 150 b. 100 c. One d. None
7- In fixed base method, the base period should be:
a. Fixed b. Abnormal c. Normal d. None
8- Index number computed by fixed base method are called:
a. Price relatives b. Link relatives c. Chain relatives d. None
9- Price relatives computed by chain base method are called:
a. Link relative b. Price relative c. Composite index d. None
10- When the price of a year is divided by the price of a particular year we get:
a. Average b. Link relative c. Price relative d. None

4. 11- When the price of a year is divided by the price of the preceding year we get:
a. Link relative b. Price relative
c. Average d. None
12- Base year quantities as weights are used in:
a. Laspeyre’s method b. Paasche’s method
c. Fisher’s Ideal method d. None
13- Current year quantities as weights are used in:
a. Paasche’s method b. Laspeyre’s method
c. Fisher’s Ideal method d. None
14- Fisher’s Ideal index number is the geometric mean of the:
a. Laspeyre’s and Fisher Index b. Laspeyre’s and Paasche’s Index
c. Paasche’s and Fisher Index d. None

5. 15- Laspeyre’s Price Index Number is also called:
a. Consumer price index b. Current year weighted
c. Base year weighted d. None
16- Paasche’s Index Number is also called:
a. Base year weighted b. Current year weighted
c. Consumer price index d. None
17--Price relative of current year is equal to:
100
YearBaseofPrice
YearCurrentofPrice

100
YearBaseprecedingtheinPrice
YearCurrenttheniPrice

100
YearprecedingtheinPrice
YearCurrentofPrice

100
YearurrentCtheinPrice
YearrecedingPtheniPrice

a.
b.
c.
d.

6. 18- Link relative of current year is equal to:
a. 100
YearPrecedingtheinPrice
YearCurrenttheniPrice

100
YearprecedingtheinPrice
YearBaseofPrice

100
YearBaseofPrice
YearCurrentofPrice

100
YearurrentCtheinPrice
YearrecedingPtheniPrice

b.
c.
d.
19- Laspeyre’s index = 132.5, Paasche’s index = 135.75, then Fisher’s index is:
a. 154.11 b. 144.11 c. 134.11 d. 164.11
20- Fisher Ideal Index is equal to:
s'Paasches'Laspeyre  Fishers'Laspeyre a. b.
c. Fishers'Paasche  d. None

7. 21- The price of a 200g jar of coffee in 2000 was $ 3. In 2003 the same jar of
coffee cost $3.25 , what would be price relative using 2000 as the base year.
a. 150% b. 100% c. 108.33% d. None
22- The selling price of an item had an index of 132 in 2000 where 1995=100. If the
selling price of the item in 2000 was $99, what would be its selling price in 1995.
a. $75 b. $100 c. $90 d. None
23- The real salary in 2010 is
Year Salary paid CPI Real Salary
2000 $ 114.75 100 $ 114.75
2005 $ 145.50 123 $ 118.29
2010 $ 472.98 200 ?
a.$ 125 b. $ 236.49 c. $90 d. None

8. 24- The purchasing power in 2005 is
Year Salary paid CPI Purchasing
power
2000 $ 114.75 100 1
2005 $ 145.50 123 ?
2010 $ 472.98 200 0.5
a. 0.81 b. 0.98 c. 0.51 d. None
25- To measure changes in total monetary worth, one should calculate:
a. A price index b. A quantity index
c. A value index d. None
26- What can be concluded if the weighted aggregates price index for a set of
prices was calculated as 106 using the Laspeyres method and 112 using the
paasche method ?
a. The paasche index is incorrect
b. There is a trend toward less expensive goods.
c. There is a trend toward more expensive goods.
d. None

9. 1-b 5-a 9-a 13-a 17-a 21-c 25-c
2-a 6-b 10-c 14-b 18-a 22-a 26-c
3-a 7-c 11-a 15-c 19-c 23-b
4-c 8-a 12-a 16-b 20-a 24-a
Answers