Introduction to Index Number - Online Test
Q1. ____ is a special type of average which provides a measurement of relative changes from time to time or from place to place.
Answer : Option B
Explaination / Solution:
An Index number is a technique of averaging all the changes in the group of series over a period of time. Index numbers is a special type of average which provides a measurement of relative changes from time to time or from place to place.
Q2. In index numbers, price in the base year is denoted by ………..
Answer : Option D
Explaination / Solution:
p0 indicate the price of the commodity in the base period, Symbolically p0 prices of base year
Q3. ____ is the ratio of the price of a certain commodity at the current year to its price at the base year.
Answer : Option C
Explaination / Solution:
No Explaination.
Q4. Index numbers helps in …………….
Answer : Option D
Explaination / Solution:
Index numbers possess much practical importance in measuring changes in the cost of living, production trends, trade, policy formation, income variations, etc.
Q5. Cost of living index is known as …………
Answer : Option B
Explaination / Solution:
Cost of living Index also known as the Consumer price index (CPI), measures the average change in retail prices.
Q6. Consumer price index is used for …………………
Answer : Option B
Explaination / Solution:
CPI is used as a measure of inflation. A CPI can be used to index the real value of wages, salaries, pensions, for regulating prices
Q7. WPI means……………..
Answer : Option D
Explaination / Solution:
The Wholesale Price Index (WPI) is the price of a representative basket of wholesale goods.
Q8. The industrial development of a country is reflected by ……………
Answer : Option C
Explaination / Solution:
The index number of industrial production measures changes in the level of industrial production comprising many industries.
Q9. Most frequently used index number formula are
Answer : Option A
Explaination / Solution:
An index number becomes a weighted index when the relative importance of items is taken care of.
Q10. Base year in an index number should be an year in which theses are
Answer : Option D
Explaination / Solution:
The base year for any index number is routinely updated. That year in which there are Minimum cyclical fluctuations.
