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Features of index numbers: It is useful in framing suitable economic policies. It is useful to present financial data in real terms Index numbers are statistical devices. Index numbers are

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प्रश्न

Features of index numbers:

  1. It is useful in framing suitable economic policies.
  2. It is useful to present financial data in real terms
  3. Index numbers are statistical devices.
  4. Index numbers are specialized averages.

विकल्प

  • c, d

  • a, b

  • b, c, d

  • a, b, c, d

MCQ
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उत्तर

c, d

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अध्याय 6: Index Numbers - Choose the correct option

संबंधित प्रश्न

Statements that are incorrect in relation to index numbers:

  1. An index number is a geographical tool.
  2. Index numbers measure changes in air pressure.
  3. Index numbers measure relative changes in an economic variable.
  4. Index numbers are specialized averages.

______ : Base year prices :: P1 : Current year prices.


Complete the Correlation:

__________ : Single variable :: Composite index : Group of variables


State with reason whether you agree or disagree with the following statement:

Index numbers measure changes in the price level only.


State with reasons whether you agree or disagree with the following statement:

Index numbers can be constructed without the base year.


Explain the features of index numbers.


Index numbers that measure changes in the level of output or physical volume of production in the economy −


Device that measures changes in an economic variable or a group of variables over a period of time –


Index number which is computed from a single variable called is a ______.


Assertion (A): Index numbers are statistical devices.

Reasoning (R): Index numbers measure only changes in the price level over a period of time.


Identify & explain the concept from the given illustration.

Agricultural Research Institute constructed an index number to measure changes in the production of raw cotton in Maharashtra during the period 2015-2020.


Mention the classification of Index Number


Explain Paasche’s price index number


Write note on Fisher’s price index number


State the test of adequacy of index number


Define Time Reversal Test


Define true value ratio


Discuss about Cost of Living Index Number


Define family budget method


State the uses of cost of Living Index Number


Compute (i) Laspeyre’s (ii) Paasche’s (iii) Fisher’s Index numbers for the 2010 from the following data.

Commodity Price Quantity
2000 2010 2000 2010
A 12 14 18 16
B 15 16 20 15
C 14 15 24 20
D 12 12 29 23

Using the following data, construct Fisher’s Ideal index and show how it satisfies Factor Reversal Test and Time Reversal Test?

Commodity Price in Rupees per unit Number of units
Basic year Current year Base year Current year
A 6 10 50 56
B 2 2 100 120
C 4 6 60 60
D 10 12 50 24
E 8 12 40 36

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 Fisher’s index number to the following data. Also show that it satisfies Time Reversal Test.

Commodity 2016 2017
Price (Rs.) Quantity (kg) Price (Rs.) Quantity (kg)
Food 40 12 65 14
Fuel 72 14 78 20
Clothing 36 10 36 15
Wheat 20 6 42 4
Others 46 8 52 6

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:

Another name of consumer’s price index number is:


Choose the correct alternative:

Laspeyre’s index = 110, Paasche’s index = 108, then Fisher’s Ideal index is equal to:


Choose the correct alternative:

Most commonly used index number is:


Choose the correct alternative:

Which of the following Index number satisfy the time reversal test?


Choose the correct alternative:

While computing a weighted index, the current period quantities are used in the:


Calculate the Laspeyre’s, Paasche’s and Fisher’s price index number for the following data. Interpret on the data.

Commodities Base Year Current Year
Price Quantity Price  Quantity
A 170 562 72 632
B 192 535 70 756
C 195 639 95 926
D 1987 128 92 255
E 1985 542 92 632
F 150 217 180 314
7 12.6 12.7 12.5 12.8
8 12.4 12.3 12.6 12.5
9 12.6 12.5 12.3 12.6
10 12.1 12.7 12.5 12.8

An Enquiry was made into the budgets of the middle class families in a city gave the following information.

Expenditure Food Rent Clothing Fuel Rice
Price(2010) 150 50 100 20 60
Price(2011) 174 60 125 25 90
Weights 35 15 20 10 20

What changes in the cost of living have taken place in the middle class families of a city?


Assertion and reasoning question:

  • Assertion (A): The index number considers all factors.
  • Reasoning (R): The index number is based on samples.

State with reasons whether you agree or disagree with the following statement:

Index number measures changes in the price level only.


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)xx100`
3) Quantity Index  c) `(sump_1q_1)/(sump_0q_1)xx100`
4) Paasche's Index d) `(sump_1)/(sump_0)xx100`

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`

The base year's index of a selected variable is assumed as ______.


Find the odd word out:

Features of Index Number:


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