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प्रश्न
Discuss about Cost of Living Index Number
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उत्तर
Cost of Living Index Number is constructed to study the effect of changes in the price of goods and services of consumers for a current period as compared with the base period.
The change in the cost of living index number between any two periods means the change in income which will be necessary to maintain the same standard of living in both periods.
Therefore the cost of living index number measures the average increase in the cost to maintain the same standard of life.
Further, the consumption habits of people differ widely from class to class (rich, poor, middle class) and even with the region.
The changes in the price level affect the different classes of people, consequently, the general price index numbers fail to reflect the effect of changes in their cost of living in different classes of people.
Therefore, the cost of living index number measures the general price movement of the commodities consumed by different classes of people.
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संबंधित प्रश्न
______ : Base year prices :: P1 : Current year prices.
Identify & explain the concept from the given illustration.
Bombay Stock Exchange has developed “Sensex” as a stock market index for reflecting the share prices of listed companies.
State the uses of Index Number
Mention the classification of Index Number
Define Laspeyre’s price index number
Using Fisher’s Ideal Formula, compute price index number for 1999 with 1996 as base year, given the following:
| Year | Commodity: A | Commodity: B | Commodity: C | |||
| Price (Rs.) | Quantity (kg) | Price (Rs.) | Quantity (kg) | Price (Rs.) | Quantity (kg) | |
| 1996 | 5 | 10 | 8 | 6 | 6 | 3 |
| 1999 | 4 | 12 | 7 | 7 | 5 | 4 |
Calculate the cost of living index by aggregate expenditure method:
| Commodity | Weight 2010 |
Price (Rs.) | |
| 2010 | 2015 | ||
| P | 80 | 22 | 25 |
| Q | 30 | 30 | 45 |
| R | 25 | 42 | 50 |
| S | 40 | 25 | 35 |
| T | 50 | 36 | 52 |
Choose the correct alternative:
Laspeyre’s index = 110, Paasche’s index = 108, then Fisher’s Ideal index is equal to:
Choose the correct alternative:
Cost of living at two different cities can be compared with the help of
Choose the correct pair :
| Group A | Group B | ||
| 1) | Price Index | a) | `(sump_1q_1)/(sump_0q_0) xx100` |
| 2) | Value Index |
b) |
`(sumq_1)/(sumq_0) xx 100` |
| 3) | Quantity Index | c) | `(sump_1q_1)/(sump_0q_1) xx100` |
| 4) | Paasche's Index | d) | `(sump_1)/(sump_0) xx 100` |
