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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.
Index number which is computed from a single variable called is a ______.
Define Index Number
Define Laspeyre’s price index number
Choose the correct alternative:
Most commonly used index number is:
Choose the correct alternative:
Consumer price index are obtained by:
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 |
Compute the consumer price index for 2015 on the basis of 2014 from the following data.
| Commodities | Quantities | Prices in 2015 | Prices in 2016 |
| A | 6 | 5.75 | 6.00 |
| B | 6 | 5.00 | 8.00 |
| C | 1 | 6.00 | 9.00 |
| D | 6 | 8.00 | 10.00 |
| E | 4 | 2.00 | 1.50 |
| F | 1 | 20.00 | 15.00 |
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` |
Complete the correlation:
P0 : ______ : : P1 : Current year price.
