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Question

Q1. The index number for the year 1995 with the base 1993 is 120, and the index number for the year 1993 with the base year 1990 is 150 . Find the index number for the year 1995 with the base year 1990 .

(a) 160

(b) 180

(c) 120 .

(d) 150

Q2. Circular Test is satisfied by :

(a) Paasche's Index Number

(b) The simple geometric mean of price relatives and the weighted aggregative with fixed weights

(c) Laspeyre.s Index Number

(d) None of these

Q3. Cost of living index numbers are also used to find real wages by the process of :

(a) Base shifting

(b) Splicing of index number

(c) Deflating of index number

(d) None of these

Q4. Net monthly salary of an employee was Rs 3000 in 1980 . The consumer price index number in 1985 is 250 with 1980 as base year . If he has to be rightly compensated then the Dearness Allowance to be paid to the employee is .

(a) Rs.4,200

(b) Rs.4,500

(c) Rs.4,900

(d) Rs. 7,500

Q5. Which of the following statement is true :

(a) Paasche's Index Number is based on base year quantity

(b) Fisher's Index Number satisfies the circular test

(c) Arithmetic mean is the most appropriate average for constructing the Index Number

(d) Splicing means constructingon one continuous series from two different indices on the basis of common base .