Index Numbers MCQ Test

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Test: Index Numbers- 1

40 Questions MCQ Test Business Mathematics and Logical
Reasoning & Statistics | Test: Index Numbers- 1
Description
This mock test of Test: Index Numbers- 1 for CA Foundation helps
you for every CA Foundation entrance exam. This contains 40
Multiple Choice Questions for CA Foundation Test: Index Numbers-
1 (mcq) to study with solutions a complete question bank. The
solved questions answers in this Test: Index Numbers- 1 quiz give
you a good mix of easy questions and tough questions. CA
Foundation students deﬁnitely take this Test: Index Numbers- 1
exercise for a better result in the exam. You can ﬁnd other Test:
Index Numbers- 1 extra questions, long questions & short
questions for CA Foundation on EduRev as well by searching
above.
QUESTION: 1
Choose the most appropriate option (a) (b) (c) or (d)

Q.A series of numerical figures which show the relative position is
called
A. index no.
B. relative no.
C. absolute no.
D. none
Solution:
QUESTION: 2
Index no. for the base period is always taken as
A. 200
B. 50
C. 1
D. 100
Solution:
QUESTION: 3
_________ play a very important part in the construction of index nos.
A. weights
B. classes
C. estimations
D. none
Solution:
QUESTION: 4
________ is particularly suitable for the construction of index nos.
A. H.M.
B. A.M.
C. G.M.
D. none
Solution:
QUESTION: 5
Index nos. show _________ changes rather than absolute amounts of

change.
A. relative
B. percentage
C. both
D. none
Solution:
QUESTION: 6
The ________ makes index nos. time-reversible.
A. A.M.
B. G.M.
C. H.M.
D. none
Solution:
QUESTION: 7
Price relative is equal to
A.
B.
C. Price in the given year × 100
D. Price in the base year × 100
Solution:
QUESTION: 8
Index no. is equal to
A. sum of price relatives
B. average of the price relatives
C. product of price relative
D. none
Solution:
QUESTION: 9
The ________ of group indices given the General Index
A. H.M.
B. G.M.
C. A.M.
D. none
Solution:
QUESTION: 10
Circular Test is one of the tests of
A. index nos
B. hypothesis
C. both
D. none
Solution:
QUESTION: 11
__________ is an extension of time reversal test
A. Factor Reversal test
B. Circular test
C. both
D. none
Solution:
Circular test Is an extension of time reversal test
QUESTION: 12
Weighted G.M. of relative formula satisfy ________test
A. Time Reversal Test
B. Circular test
C. Factor Reversal Test
D. none
Solution:
QUESTION: 13
Factor Reversal test is satisfied by
A. Fisher’s Ideal Index
B. Laspeyres Index
C. Paasches Index
D. none
Solution:
QUESTION: 14
Laspeyres formula does not obey

A. Factor Reversal Test
B. Time Reversal Test
C. Circular Test
D. none
Solution:
QUESTION: 15
A ratio or an average of ratios expressed as a percentage is called
A. a relative no.
B. an absolute no.
C. an index no.
D. none
Solution:
QUESTION: 16
The value at the base time period serves as the standard point of
comparison
A. false
B. true
C. both
D. none
Solution:
QUESTION: 17
An index time series is a list of _______ nos. for two or more periods of
time
A. index
B. absolute
C. relative
D. none
Solution:
QUESTION: 18
Index nos. are often constructed from the
A. frequency
B. class
C. sample
D. none
Solution:
QUESTION: 19
__________ is a point of reference in comparing various data describing

individual behaviour.
A. Sample
B. Base period
C. Estimation
D. none
Solution:
QUESTION: 20
The ratio of price of single commodity in a given period to its price in

another period is called the
A. base period
B. price ratio
C. relative price
D. none
Solution:
QUESTION: 21
A. Relative Price Index
B. Simple Aggregative Price Index
C. both
D. none
Solution:
QUESTION: 22
Chain index is equal to
A.
B.
C.
D.
Solution:
QUESTION: 23
P01 is the index for time
A. 1 on 0
B. 0 on 1
C. 1 on 1
D. 0 on 0
Solution:
QUESTION: 24
P10 is the index for time
A. 1 on 0
B. 0 on 1
C. 1 on 1
D. 0 on 0
Solution:
QUESTION: 25
When the product of price index and the quantity index is equal to the
corresponding value index then
A. Unit Test
D. none holds
Solution:
QUESTION: 26
The formula should be independent of the unit in which or for which

price and quantities are quoted in
A. Unit Test
D. none
Solution:
QUESTION: 27
Laspeyres method and Paasche’s method do not satisfy
A. Unit Test
D. none
Solution:
QUESTION: 28
The purpose determines the type of index no. to use
A. yes
B. no
C. may be
D. may not be
Solution:
QUESTION: 29
The index no. is a special type of average
A. false
B. true
C. both
D. none
Solution:
QUESTION: 30
The choice of suitable base period is at best temporary solution
A. true
B. false
C. both
D. none
Solution:
QUESTION: 31
Fisher’s Ideal Formula for calculating index nos. satisfies the _______
tests
A. Units Test
B. Factor Reversal Test
C. both
D. none
Solution:
QUESTION: 32
Fisher’s Ideal Formula dose not satisfy _________ test

A. Unit test
B. Circular Test
C. Time Reversal Test
D. none
Solution:
QUESTION: 33
_________________ satisfies circular test
A. G.M. of price relatives or the weighted aggregate with fixed weights
B. A.M. of price relatives or the weighted aggregate with fixed weights
C. H.M. of price relatives or the weighted aggregate with fixed weights
D. none
Solution:
QUESTION: 34
Laspeyre's and Paasche’s method _________ time reversal test
A. satisfy
B. do not satisfy
C. are
D. are not
Solution:
QUESTION: 35
There is no such thing as unweighted index numbers
A. false
B. true
C. both
D. none
Solution:
QUESTION: 36
Theoretically, G.M. is the best average in the construction of index

nos. but in practice, mostly the A.M. is used
A. false
B. true
C. both
D. none
Solution:
QUESTION: 37
Laspeyre’s or Paasche’s or the Fisher’s ideal index do not satisfy
A. Time Reversal Test
B. Unit Test
C. Circular Test
D. none
Solution:
QUESTION: 38
___________ is concerned with the measurement of price changes over

a period of years, when it is desirable to shift the base
A. Unit Test
B. Circular Test
C. Time Reversal Test
D. none
Solution:
QUESTION: 39
The test of shifting the base is called
A. Unit Test
C. Circular Test
D. none
Solution:
QUESTION: 40
Which among the following statements is INCORRECT?

A. Coefficient of correlation can be computed directly from the data without
measuring deviation.
B. Measures of Dispersion are also called averages of the second order.
C. Standard deviation can be negative.
D. Mean deviation can never be negative.
Solution:
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Test: Index Numbers- 1

Choose the most appropriate option (a) (b) (c) or (d)

Index no. for the base period is always taken as

_________ play a very important part in the construction of index nos.

________ is particularly suitable for the construction of index nos.

Index nos. show _________ changes rather than absolute amounts of

The ________ makes index nos. time-reversible.

Price relative is equal to

C. Price in the given year × 100

D. Price in the base year × 100

Index no. is equal to

A. sum of price relatives

B. average of the price relatives

C. product of price relative

The ________ of group indices given the General Index

Circular Test is one of the tests of

__________ is an extension of time reversal test

A. Factor Reversal test

Weighted G.M. of relative formula satisfy ________test

A. Time Reversal Test

C. Factor Reversal Test

Factor Reversal test is satisfied by

A. Fisher’s Ideal Index

Laspeyres formula does not obey

B. Time Reversal Test

A ratio or an average of ratios expressed as a percentage is called

Index nos. are often constructed from the

__________ is a point of reference in comparing various data describing

The ratio of price of single commodity in a given period to its price in

A. Relative Price Index

B. Simple Aggregative Price Index

Chain index is equal to

P01 is the index for time

P10 is the index for time

B. Time Reversal Test

C. Factor Reversal Test

The formula should be independent of the unit in which or for which

B. Time Reversal Test

C. Factor Reversal Test

Laspeyres method and Paasche’s method do not satisfy

B. Time Reversal Test

C. Factor Reversal Test

The purpose determines the type of index no. to use

The index no. is a special type of average

The choice of suitable base period is at best temporary solution

B. Factor Reversal Test

Fisher’s Ideal Formula dose not satisfy _________ test

C. Time Reversal Test

_________________ satisfies circular test

A. G.M. of price relatives or the weighted aggregate with fixed weights

B. A.M. of price relatives or the weighted aggregate with fixed weights

C. H.M. of price relatives or the weighted aggregate with fixed weights

Laspeyre's and Paasche’s method _________ time reversal test

There is no such thing as unweighted index numbers

Theoretically, G.M. is the best average in the construction of index

Laspeyre’s or Paasche’s or the Fisher’s ideal index do not satisfy

A. Time Reversal Test

___________ is concerned with the measurement of price changes over

C. Time Reversal Test

The test of shifting the base is called

B. Time Reversal Test