1. This device is an extension of the time series
A. Ratio Analysis
B. Index numbers
C. Regression
D. Correlation
2. It combines two or more time series variables related to non-comparable units
A. Correlation
B. Regression
C. Index numbers
D. Ratio Analysis
3. Each number in a series of specified index number has the following characteristic
A. It is a pure number i.e., it does not have any unit
B. It is calculated according to a pre-determined formula
C. Generated at regular time intervals, sometimes during the same time interval at different places
D. All of the above
4. Index numbers are also known as
A. Economic barometer
B. Specialized average
C. Both (a) and (b)
D. None of the above
5. Index numbers have
A. No unit
B. Percentage
C. Either (a) or (b)
D. None of the above
6. Significance of index numbers include
A. Different types of price indices are used for wage and salary negotiations
B. Various indices are useful to the Government in framing policies
C. Index numbers can also be used to compare cost of living across different cities or regions
D. All of the above
7. Issues which may be faced in the construction of index numbers
A. Collection of Data
B. Selection of Base Year
C. Selection of Appropriate Index
D. All of the above
8. Which collecting the data, one needs to decide
A. Identification of Commodities to be Included
B. Sources of Data
C. Timings of Data Collection
D. All of the above
9. The data used in construction of index numbers should be
A. Reliable
B. Adequate
C. Accurate
D. All of the above
10. It is the reference period for comparing and analyzing the changes in prices or quantities in a given period.
A. Actual
B. Real
C. Base
D. None of the above
11. Types of indices include
A. Price indices
B. Quantity indices
C. Value indices
D. All of the above
12. Consider prices of a commodity or a group of commodities and compare changes of prices from one period to another period and also compare the difference in price from one place to another
A. Quantity indices
B. Price indices
C. Value indices
D. None of the above
13. Unweighted Index Numbers can be
A. Simple Aggregative Index
B. Simple Average of Relatives Index
C. Both (a) and (b)
D. None of the above
14. It is a period with price or quantity figures neither too low, nor too high.
A. Actual period
B. Normal period
C. Moderate period
D. None of the above
15. Different methods of indices give ………….. results, when applied to the same data.
A. Different
B. Same
C. Zero
D. None of the above
16. Measure the combined effects of price and quantity changes
A. Price indices
B. Quantity indices
C. Value indices
D. None of the above
17. In the case of price indices, through this method, the total of unit cost of each commodity in the current year is divided by the total of unit cost of the same commodity in the base year and the quotient is multiplied by 100.
A. Simple Aggregative Index
B. Simple Average of Relatives Index
C. Both (a) and (b)
D. Neither (a) nor (b)
18. Simple Aggregative Index suffers from which limitation?
A. The unit size affects the index number
B. Relative importance of different commodities is not reflected in the index
C. Both (a) and (b)
D. Neither (a) nor (b)
19. In this method of constructing price index, first of all price relatives have to be computed for the different items included in the index then the average of these is calculated symbolically
A. Simple Aggregative Index
B. Simple Average of Relatives Index
C. Both (a) and (b)
D. None of the above
20. In this method, weights assigned to each commodity are the quantities consumed in the base year for price indices
A. Laspeyre’s index
B. Paasche’s index
C. Fisher’s index
D. None of the above