MEHUL SIR’S

MO: 98 245 98 542 GROUP OF EDUCATION

LESSON 1 INDEX NUMBER
SECTION: A Choose the correct option given below. [Each 1 marks] [4]
(1) Which Index Number is useful to know the changes in the prices of shares & stocks?
(A) Index number if Industrial production (B) Index Number of Prices
(C)Index Number of Investment (D) Wholesale price Index Number
(2) Which Index Number is used to find taxation Policy of Government?
(A)Cost of Living Index Number (B) Laspeyer’s
(C) Paasches (D) Fishers
(3) Which average is considered as the best average in construction of the index number?
(A) Harmonic mean (B) Arithmetic Mean
(C) weighted Mean (D) Geometric Mean
(4) If IP = IF, Which of the following statements is true?
I
(A) IP =2 IL (B) I = L (C) IF = IP = IL (D)4IF = IL
2
SECTION: B Answer the following question in one line. [Each of 1 mark] [4]
(5) Write main difference between explicit weight & implicit weight?
(6) How should be the base year in the calculation of index number?
(7) “The price index number of oil is ` 500” states whether this statement is true or false & if
false, correct & rewrite it.
(8) If the price of commodity has increased by 150 % its index number is______?

SECTION: C Answer the following question as directed. [Each 2 Marks] [10]

(9)If Σp0q1 = 205. & Index Number of Paasche’s is 140 than find current year’s total
expenses.
(10) Which points are to be considered in the construction of cost of living index number?
(11)The wholesale price index numbers for the year 2015 and 2016 are found to be 177.6
and 181.2 respectively. Find the rate of inflation using index numbers of both the years.
(12) Write properties of ideal index number.
(13) The cost of living Index number for the current year has risen from 100 to 130. If the monthly
income of a worker has increased from Rs.3200 to Rs.5500; examine whether his purchasing
capacity has increased or not. If so,how much?
SECTION: D Answer the following question as directed. [Each 3 marks] [12]
(14)Cost of living index number of the following data is 376.65. Find the weight of clothing.

Group Food Clothing Electricity Rent Misc.

Index Number 550 215 220 150 275
Weight 46 (?) 7 12 25
(15)If ∑p1q0 : ∑p0q0 = 5:3 & ∑p1q1 : ∑p0q1 = 3:2 compute the Laspeyre”s , Paasches’ &
Fisher’s Index Number.
(16) The price of three items A, B, C from group of five items for the year 2016 with
respect to the base year 2012 have increased by 40%, 50% & 120% respectively; while the
price of the remaining two item D & E have declined by 10% and 5% respectively. The
weight of item A is three times that of item B and weight of item C is 4 times that of item B;
while weight of each of items D and E is two and half times that of B. Using this
information, find the common price index number of the five items for the year 2016.
(17) Construct the cost of living index number for the year 2016 by family budget method.
Item 2010 2016
Quantity Price (in Rs.) Price (in Rs.)
A 30 4 6
B 8 6 8.4
C 5 5 12
D 4 25 40
E 20 4 10
F 15 2 2.8

SECTION: F Answer the following question as directed. [Each of 5 marks] [10]

(18)Find Laspeyer’s, Pasche’s & Fisher’s Index Number from given data.
YEAR 2012 YEAR 2015
Total Expenditure Consumption Total Expenditure Consumption
A 84.00 30 KG 115.50 35KG
B 21.00 15LITTER 42.00 20 LITTER
C 114.00 4 KG 195.60 6KG
D 120.00 2 KG 120.00 1.5KG

(19)The detail regarding miscellaneous group are as follows from this data find the index
number of miscellaneous group.
Item A B C D E
Weight 15 25 10 20 30
Price of base 1.5 5.00 0.80 0.90 0.60
year
Price of current 2.25 10.00 2.20 0.30 1.50
year
If the expenditure on food, clothing, rent & fuel in the current year has increased by
210%, 300%, 190%, & 170% to that in the base year & the expenditure on this group are
respectively 40%, 10%, 20% & 15% of the total expenditure. Construct the cost of living
Index Number of workers.