MCQ Questions for Class 11 Commerce Economics Index Numbers Quiz 2

Construct a composite index number as a weighted mean from the following data:

Index Number	122	145	101	98	137	116
Weight	7	2	4	1	6	5

0%
120
0%
122
0%
130
0%
132

Explanation

$Index\,number$ $I$	$Weight$ $w$	$I.w$
$122$	$7$	$854$
$145$	$2$	$290$
$101$	$4$	$404$
$98$	$1$	$98$
$137$	$6$	$822$
$116$	$5$	$580$
$Total$	$\sum w=25$	$\sum Iw=3048$

\Rightarrow

$\Rightarrow$ Composite index number =

\frac{\sum I w}{\sum w} = \frac{3048}{25} = 121.92 \approx 122

$\dfrac{\sum Iw}{\sum w}=\dfrac{3048}{25}=121.92\approx 122$ .

Human Development Index (HDI) is a composite index of which of the following?

0%
Health , literacy and employment
0%
National income , size of population and general price level
0%
National income , per capita income and per capita consumption
0%
Physical resources , monetary resources and population size

The Human Development Index (HDI) is introduced by _______.

0%
UNDP
0%
UNICEF
0%
IMF
0%
World Bank

While calculating index numbers, the period with which the comparison is to be made, is known as the _______.

0%
compared period
0%
base period
0%
comparable period
0%
none of these

If all the values are not of equal importance the index number is called:

0%
Simple
0%
Unweighted
0%
Weighted
0%
None

A quantity index that is designed to measure changes in physical volume or production levels of industrial goods over time is known as the

0%
physical volume index
0%
time index
0%
Index of Industrial Production and Capacity Utilization
0%
none of the above

Price index numbers express __________.

0%
relative price level of commodities depending on the base period
0%
the changes in the physical volume of production, construction or employment.
0%
level of the output in the economy.
0%
none of the above

An index number is called a simple index when it is computed from:

0%
Multiple variable
0%
Bi-variable
0%
Single variable
0%
None of these

Stock market indexes traditionally served as a benchmark to measure the performance of which of the following types of portfolios of the investors/promoters?

0%
Equity portfolio
0%
Tax saving instruments
0%
Mutual Funds
0%
Investments in Govt Securities

The base year for SENSEX is____.

0%
1976-1977
0%
1978-19779
0%
1977-1978
0%
none

________ is not a dimension of Human Development Index.

0%
Per Capita income
0%
Education
0%
Life expectancy
0%
Moral value

IIP stands for ________.

0%
Indian Industrial Production
0%
Index of Indian Production
0%
Index of Indian Prices
0%
Index of Industrial Production

_______ number measures price changes from the producers perspective.

0%
Industrial production index
0%
WPI
0%
Producer price index
0%
Both A and C

Which of these is/are not component of HDI index?

0%
Knowledge
0%
Longevity
0%
Income
0%
Health

The ________ is widely used to measure the rate of inflation.

0%
IIP
0%
CPI
0%
WPI
0%
none of the above

If the sensex rises, it indicates _____.

0%
that the market is doing well and investors expect better earnings from companies
0%
it indicates a growing confidence of investors in the basic health of the economy
0%
both A and B
0%
none

CPI stands for ________.

0%
Customer Price Index
0%
Consumer Price Index
0%
Customer Petrol Index
0%
Consumer Petrol Index

From the following detail calculate index number using Aggregate expenditure method.

Items	Price in $2005$ c	Price in $2011$	Weight
Milk	$16$	$24$	$10$
Rice	$20$	$28$	$1$
Wheat	$10$	$16$	$15$
Total

0%
$151.22$
0%
$141.21$
0%
$121.5$
0%
$117.70$

From the following detail what is the weighted average price index.

Items	Price in $2005$ c	Price in $2011$	Weight
Milk	$16$	$24$	$10$
Rice	$20$	$28$	$1$
Wheat	$10$	$16$	$15$
Total

0%
$114.4$
0%
$133.33$
0%
$121.5$
0%
$117.70$

If the index number of aluminium in

2014

$2014$ is

350

$350$ with base year

2010

$2010$ , the prices of aluminium must have increased by ____________.

0%
$250\%$
0%
$350\%$
0%
$3.5\%$
0%
$2.5\%$

The average monthly emoluments of the officers of Nav Ratan Companies were Rs.

66, 000

$66,000$ in

2006

$2006$ when the consumer price index is

225

$225$ , what would have been their monthly emoluments in

1995

$1995$ when the price index was

150

$150$ .

0%
Rs. $36000$
0%
Rs. $42000$
0%
Rs. $44000$
0%
Rs. $42150$

Given the Paasche Price index and Laspeyres index being

101.5

$101.5$ and

107.85

$107.85$ respectively. Find the Fisher ideal price index.

0%
$109.66$
0%
$108.675$
0%
$104.62$
0%
$108.80$

Given that Paasche Price index and Laspeyres index being

121.5

$121.5$ and

117.85

$117.85$ respectively. Find the Dorbish and Bowley price index.

0%
$115.77$
0%
$119.675$
0%
$119.05$
0%
$108.80$

The average monthly emoluments of PSU officers were Rs.

25, 000

$25,000$ pm in

1995

$1995$ when the consumer price index was

150

$150$ in

1995

$1995$ , in

2006

$2006$ their monthly emoluments went up to Rs.

35, 000

$35,000$ due to additional DA paid from time to time which is directly based on consumer price index. The consumer price index in

2006

$2006$ is __________.

0%
$210$
0%
$200$
0%
$196$
0%
$215$

Chain base index of the following fixed base index for the years

2005

$2005$ to

2009

$2009$ is.

Year	$2005$	$2006$	$2007$	$2008$	$2009$
FBI	$80$	$88$	$105.60$	$95.4$	$133$

0%
$(110, 115, 98, 130)$
0%
$(110, 115, 108, 125)$
0%
$(110, 120, 90, 140)$
0%
$(110, 125, 95, 136)$

The price movement of essential food grain items during the past two years is given.

Wheat	Rice	Cloth	Pulses	Tomato
$2004$	Rs. $16$ kg.	Rs. $2$ mts.	Rs. $30$ kg.	Rs. $15$ per kg.
$2009$	Rs. $20$	Rs. $3.30$ per mt.	Rs. $45$	Rs. $20$

Taking

2004

$2004$ as the base year, the price index of essential commodities in

2009

$2009$ is __________.

0%
$118$
0%
$154.60$
0%
$123$
0%
$131$

Average price of a commodity in

2009

$2009$ was

25 %

$25\%$ more than the price in

2008

$2008$ . What is the price relative for

2008

$2008$ .

0%
$80\%$
0%
$85\%$
0%
$120\%$
0%
$1.20$

Which country rank first in terms of HDI index?

0%
Canada
0%
Japan
0%
Norway
0%
USA

When the cost of edible vegetable oil increased by

60 %

$60\%$ over the last for years a housewife who maintain her former scale of consumption felt that his cost of living index has gone up by

12 %

$12\%$ . What percentage of his cost of living was due edible oil before the change in price.

0%
$15\%$
0%
$20\%$
0%
$9\%$
0%
$12\%$

If the index number of Aluminium in 2005 is

350

$350$ with base year 1995, the prices of aluminium must have increased by

0%
$250$ %
0%
$350$ %
0%
$3.5$ %
0%
$2.5$ %

Simple Method	Weighted method
Simple Aggregate Method	Weighted Average of Price Relatives Method
Simple Average of Price Relatives Method	Weighted Aggregative Relatives Method Laspeyres’ Index Paasche’s Index Fischer’s Index

CBSE Questions for Class 11 Commerce Economics Index Numbers Quiz 2 - MCQExams.com

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Practice Class 11 Commerce Economics Quiz Questions and Answers

CBSE Questions for Class 11 Commerce Economics Index Numbers Quiz 2 - MCQExams.com

0:0:2

Practice Class 11 Commerce Economics Quiz Questions and Answers

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