Practice Test

Q1) The cost of living index number for the years 2001 and 2007 are 150 and 200 respectively. A person earned Rs.18,000 per month in the year 2001. What should be his earning per month in the year 2007, so as to maintain his former (i.e. of the year 2001) standard of living? Show Answer

Q2) If Laspeyre's and Paasche's price index number are 50 and 72 respectively, find Dorbish - Bowley's and Fisher's index numbers. Show Answer

Q3) If for a data, Laspeyre's Index number is 86.02 and Paasche's Index number is 81.25. Calculate Dorbish - Bowley's index number. Show Answer

Q4) The cost of living Index Number for the years 2005 and 2007 are 230 and 300 respectively. A person earns Rs. 16,100 per month in the year 2005. What should be his earning per month in the year 2007, so as to maintain his former (i.e. of the year 2005) standard of living. Show Answer

Q5) Price Index Number by Simple Aggregate
Method is given by Show Answer

Q6) Quantity Index Number by Simple Aggregate Method is given by Show Answer

Q7) Value Index Number by Simple Aggregate Method is given by Show Answer

Q8) Price Index Number by Weighted Aggregate Method is given by Show Answer

Q9) Quantity Index Number by Weighted Aggregate Method is given by Show Answer

Q10) Value Index Number by Weighted Aggregate Method is given by Show Answer

Q11) Laspeyre’s Price Index Number is given by Show Answer

Q12) Paasche’s Price Index Number is given by Show Answer

Q13) Dorbish-Bowley’s Price Index Number is given by Show Answer

Q14) Fisher’s Price Number is given by Show Answer

Q15) Marshall-Edgeworth’s Price Index Number is given by Show Answer

Q16) Walsh’s Price Index Number is given by Show Answer

Q17) The Cost of Living Index Number using Aggregate Expenditure Method is given by Show Answer

Q18) The Cost of Living Index Number using Weighted Relative Method is given by Show Answer

Q19) There are _____ types of Index Number. Show Answer

Q20) Which of the following represents unweighted Index Number? Show Answer

Q21) Which of the following Index Number considers current years quantity as weight? Show Answer

Q22) Which of the following formula shows the relation among Laspeyre’s, Paasche’s and Fisher’s Index Numbers? Show Answer

Q23) Which of the following Index Number considers base years quantity as weight? Show Answer

Q24) Which of the following formula shows the relation among Laspeyre’s, Paasche’s and Dorbish-Bowley’s Index Numbers? Show Answer

Q25) Which of the following expenditure is taken as weight to find Cost of Living Index Number by Family Budget Method? Show Answer

Q26) The cost of living index numbers for the years 2011 and 2013 are 120 and 180 respectively. Mr. Bin earns Rs. 32,400 p.m. in the year 2011. What should be his earning p.m. in the year 2013, so as to maintain his former standard of living? Show Answer

Q27) The cost of living index number for the year 2013 as compared to the year 2012 is 270. If the monthly expenditure of a person in the year 2012 is Rs. 11,000, then what will be his monthly expenditure in the year 2013? Show Answer

Q28) The period with respect to which comparisons are made is called _____. Show Answer

Q29) Index number for base year is always considered as ______. Show Answer

Q30) Index number is a special type of ______. Show Answer

Q31) Index number is always expressed in ______. Show Answer

Q32) Index number is also called as _______. Show Answer

Q33) _______ index number is called as ideal index number. Show Answer

Q34) In Laspery’s price index number weight is considered as ______. Show Answer

Q35) In Paasche’s price index number weight is considered as ______. Show Answer

Q36) Fisher’s price index number is the ______. Show Answer

Q37) A period for which index number is determined is called as ______. Show Answer

Q38) The period of comparison or with respect to which index number is determined is called as ______. Show Answer

Q39) An index number is called a simple index when it is computed from ______. Show Answer

Q40) If all the values are of equal importance, the index numbers are called______. Show Answer

Q41) Index numbers can be used for ______. Show Answer

Q42) When the prices of rice are to be compared, we compute ________. Show Answer

Q43) Price relatives are a percentage ratio of current year price and _________. Show Answer

Q44) An index number that can serve many purposes is called __________. Show Answer

Q45) Another name of consumer's price index number is _________. Show Answer

Q46) Purchasing power of money can be accessed through ________. Show Answer

Q47) Cost of living at two different cities can be compared with the help of ________. Show Answer

Q48) Consumer price index numbers are obtained by _________. Show Answer

Q49) Laspeyre's index = 110, Paasche's index = 108, then Fisher's Ideal index is equal to _______. Show Answer

Q50) Most commonly used index number is ______. Show Answer

Q51) Consumer price index is obtained by ______. Show Answer

Q52) The aggregative expenditure method and family budget method always give _______. Show Answer

Q53) If all the values are not of equal importance the index number is called ______. Show Answer

Q54) Which of the following formula satisfy the time reversal test? Show Answer

Q55) When the price of a divided by the price of the preceding year, we, get _____. Show Answer

Q56) The most appropriate average in averaging the price relatives is ________. Show Answer

Q57) In constructing index number geometric mean relatives are _________. Show Answer

Q58) The most suitable average in chain base method is ________. Show Answer

Q59) Base year quantities weights are used in _______. Show Answer

Q60) The Federal Bureau of Statistics prepares ________. Show Answer

Q61) While computing a weighted index, the current period quantities are used in the _______. Show Answer

Q62) When the base year values are used as weights, the weighted average of relatives price index number is the same as the _______. Show Answer

Q63) Fisher's ideal index number is the geometric mean of the _______. Show Answer

Q64) The ratio of a sum of prices ill current period to the sum of prices ill the base period, expressed as a percentage is called ________. Show Answer

Q65) Simple average of relatives is equal to _________. Show Answer

Q66) Paasche's price index number is also called ________. Show Answer

Q67) Laspeyre's price index number is also called ________. Show Answer

Q68) Index number calculated by Fisher's formula is ideal because it satisfy ________. Show Answer

Q69) Price Index Numbers measures the changes in _______. Show Answer

Q70) Paasche's Formula is the type of _______. Show Answer

Q71) Index Numbers may be categorized in terms of ______. Show Answer

Q72) Which of the following is useful to calculate Dearness allowances of employee? Show Answer

Q73) Which is the one of the problem in the construction of index number? Show Answer

Q74) If price index of base year with respect to current year is 125 then what it means? Show Answer

Q75) Which is the best suitable measure of central tendency to construct index number? Show Answer

Q76) Which one of the following is not the problem in the construction Index Number? Show Answer

Q77) Base period always _______. Show Answer

Q78) Which of the following is used to denote prices in the base period ________? Show Answer