Q1.
P01 is the index for :
(a) 1 on 0 (b) 0 on 1 (c) both (d) None of these
Solution.
(a) 1 on 0
Solution
Q2.
Purchasing power of money is .
Solution
Reciprocal of price index .
Solution
Q3.
Change of reference period is known as .
Solution.
Base shifting .
Solution
Q4.
The price index number for the year 2006 is 225 with the base year 2000 . Then the price have increased on an average by .
Solution.
125%
Note :As we know that price index for base year is 100 .
Solution
Q5.
A worker earns Rs. 4500 per month in 2000 . The cost of living index number increased by 90% during 2005 . How much should he earn
to maintain same living standard .
Solution.
Price index for 2000 is 100 , and price hiked 90% so price index for 2005 will 190 .
So required money is Rs. 8550 .
Solution
Q6.
Write the formula of Aggregate expenditure formula to find cost of living index .
Solution.
∑p1q0/
∑p0q0
x 100
Note : This is similar to Laspeyer's price index
number .
Solution
Q7.
Which of the following satisfies circular test .
(a) Fisher's formula (b) Paasche's formula (c) Laspeyer's formula
(d) None of the above
Solution.
(d) None of the above
Solution
Q8.
Fisher's ideal index number not satisfies .
(a) Time reversal test (b) Unit test (c) Circular test (d) Factor
reversal test
Solution.
Circular test .
Solution
Q9.
Price of a commodity at a place has decreased by 25% over the base period prices , then the index number of that place is :
Solution.
75
Solution
Q10.
Arithmetic mean of Laspeyer's and Paasche's index number gives .
Solution.
Dorbish - Bowley Index Number
Solution
