CHAPTER: 11 INDEX NUMBERS FACULTY: LSS

1. Index number of the base year is ……………..

2. The symbol 𝑃 indicates for the time ………… on ……………

3. Bowley’s Index number is …………….. of Laspeyer’s and Paasche’s.

4. Fisher’s Index number is ……………… of L and P?

5. Bowley’s Index number is ……………than Fisher’s Index Number.

6. In Laspeyer’s Index number the weights are ………..

7. In Paasche’s Index number the weights are …………

8. Time Reversal Test is satisfied by ……………..

9. Fisher’s Index number fails to satisfy…………. test.

10. The condition for F.R.T. is ……………

11. The condition for T.R.T. ……………

12. Index numbers are used in ………

a) Economic b) Statistics c) Both a & b d) None

13. ∑ 𝑃 𝑞 = 250; ∑ 𝑃 𝑞 = 300; ∑ 𝑃 𝑞 = 400; ∑ 𝑃 𝑞 = 500. Find price indices of L, P, B, M, F

& Value Index.

14. ∑ 𝑃 𝑞 =160; ∑ 𝑃 𝑞 =240. Find the appropriate index number.

15. Laspeyer’s Price Index is 90 % and Paasche’s Price index is 160%. Find Bowley’s & Fisher’s
Price Indices.

16. If Fisher’s Price Index is 180% and Value Index is 240% . Find Fisher’s Quantity Index.

17. Fisher’s Price Index for the year 2007 w.r.t. 2005 was 125%. Find Price Index of 2005 w.r.t.
2007.

18. Fisher’s Price Index is 150 and Paasche’s Price Index is 144. Find:
a) Laspeyer’s Price Index b) Bowley’s Price Index
19.
Commodity A B C
Base year value Rs.60 Rs.120 Rs.80
Current year value Rs.150 Rs.200 Rs.140
Find the appropriate Index number.
20. Price of a commodity in the year was 2007 was Rs.40 and it rose by Rs.20 in 2008. Find Price
relative of the commodity in the year 2008.

21. The Price Index in the year 2005 in a particular place is 260%. What does it indicate?

22. The prices of all the four commodities in the year 2007 have increased 1.6 times of the base
period. The price index for the year 2007 is ……….

23. From 2003 to 2008 the prices of all commodities have been decreased by 25%. Find the index
number of 2008.

24. When prices are decreased by 30% from the B. Year, the price index now is ……

25.
2006 2007
Commodity
Price Qty Price Qty
A Rs.5 3 Rs.8 2
B Rs.3 5 Rs.5 4
C Rs.10 2 Rs.12 5
Find the price index of L, P, M, B and F for the year 2008

26. Find Paasche’s Price Index for 1975

1970 1975
Commodity
Price Qty Price Qty
A Rs.1 6 Rs.3 5
B Rs.3 5 Rs.8 5
C Rs.4 8 Rs.10 6

27.

1992 A B C D 1993 A B C D
Price 3 5 4 1 Price 4 5 6 3
Qty 18 6 20 14 Qty 15 9 26 15
Find Paasche’s Price Index.

28. From Base year the prices fall commodities are increased by 20 % now. The Index number now is
………….
a) 100 b) 20 c)120 d) None

29. In 2005 Price Index is 286 w.r.t. Base 1995. Find how much price is increased in 2005.
a) 186 % b) 286 % c) 86% d) 386%
30. Time Reversal Test is satisfied by …………….
a) Fisher’s b) Laspeyer’s c)Paasche’s d) Dorbish Bowley

31. The monthly salary of an employee was Rs.3,000 in 1985. The Consumer’s Price Index in the
year 2010 is 250 w.r.t. 1985. The Additional Dearness Allowance Payable to him in 2010 is …

32. 𝐼𝑓 ∑ 𝑃 𝑞 = 116; ∑ 𝑃 𝑞 =140; ∑ 𝑃 𝑞 =97; ∑ 𝑃 𝑞 = 117. Find Fisher’s Price Index.

33. Bowley’s index 150; Laspeyer’s Index 180. Find Paasche’s Price Index.

34. Time Reversal Set is satisfied by …………..

a) Marshall Formula b) Laspeyer’s Formula c) Paasche’s Formula d) Bowley’s Formula

35. If ∑ 𝑃 𝑄 =1180; ∑ 𝑃 𝑄 =1170; ∑ 𝑃 𝑄 = 1064; ∑ 𝑃 𝑄 = 1100. Find Fisher’s Index

Number.

36. The Price of first two commodities are increased by10% and 20% and the price of third
commodity is reduced by 30%. The relevant importance i.e., weights of three commodities are
3:3:1. Find the weighted Price Indices.

37. From 2005 to 2008, the price of a commodity is increased by 30% and the quantity of
consumption during the same period is increased by 20%. Find the percentage variation in the
value.

38. The value of a commodity in the year 2008 was Rs.600 with the Price Index 120%. Deflate the
value.

39. Calculate the simple average of price relative for the year 2012 from the following:

Commodity A B C D E
Price in 2011 115 108 95 80 90
Price in 2012 125 117 108 95 95

40. An Index time series is a list of …………. Index numbers for two or more period of time.

41. The link relative of a commodity in the year 2006 was 140%. The chain base Index of the
commodity in the year 2005 was 180%. Find Chain Base Index of the commodity in the year
2006.

42. Which of the following statement is true?

a) Paasche’s Index is based on base year quantity.
b) Fisher’s Index number satisfies circular test.
c) AM is the most appropriate average for construction of GM.
d) Splicing means constructing one continuous series from two different sets of indices on the
basis of common base.
43. In the year 2000, the monthly salary of an Employee is Rs.10,000/-. It was increased 20,000 in
2013. The consumer price index in 2013 is 240 with base year 2000. What is his salary in 2013 as
per consumer Price Index?
44. The formula for calculation of Deflated Value is;-

a) x 100

b) x 100

c) x100
d) 𝑁𝑜𝑛𝑒

45. FRT includes which of the following

∑
a) ∑

∑ ∑
b) ∑
*∑

∑
c) ∑

∑ ∑
d) ∑
*∑

46. Which of the following play a very important role in construction of Index number?
a) Classes b) Weight c) Estimation d) None

47. With the rise of 10% in the prices, the wages are increased by 20%. The real wage is increased by
……….
a) 10% b) More than 10% c) 20% d) Less than 10%

48. Consumer’s Price Index for the year 1957 was 313 taking 1940 as Base year. The monthly wage
of a worker is in 1957 was Rs.160. Find Real wage.
a) Rs.48.40 b) Rs.51.12 c) Rs.40.30 d) None

49. Shifted Price Index = * 100

a) True b) False c) Both d) None

50. Purchasing Power of money is ……………

a) Reciprocal of price index b) Equal to price index
c) Unequal price index d) None

51. In the year 2010, the monthly salary was Rs.24,000. The price index for the year 2010 was 140. It
rose to 224 in the year 2016. What is additional salary payable in 2016?

52. The suitable Index number where every year is compared ………………
a) Fixed base Index b) Fisher’s base Index
c) Chain base Index number d) Both a & b
53. Which of the following is true?
a) Paasche’s Index Number is based on Base year quantity
b) Fisher’s Index Number is AM of Laspeyer’s and Paasche’s
c) AM is the most appropriate Average for construction of Index Number
d) Fisher’s Index Number is Ideal Index Number

54. Fisher’s Index Number is given by

a) 𝐹 = L + P
b) 𝐹 = L * P
c) 𝐹 =
d) None

55. Monthly Income of a Person in the year 2014 was Rs.8,000 and Consumers Price Index was 160.
In the year 2017 Consumers Price Index was 200. What is the additional salary payable in 2017?

56. The value of the Base time Period is used as Standard point of comparison.
a) True b) False c) Can’t be said d) None

57. Fisher’s Index Number does not satisfy …………… test.

58. The cost of Living Index for the year 2015 and 2018 are 97.5 and 115 respectively. The salary of
a worker in 2015 was Rs.19,500. What is the additional salary payable to him in the year 2018 to
maintain the same standard of living?

59. If L = 250 P= 160.

Find Fisher’s Index Number

60. ∑ 𝑃 𝑄 =240; ∑ 𝑃 𝑄 =600; ∑ 𝑃 𝑄 =480; ∑ 𝑃 𝑄 =192;

Find Laspeyer’s Price Index.
a) 250 b) 300 c) 350 d) 200

61. The Price Index for the year 2015 was 217 % w.r.t. base year 2005. The % increase in the price
index from the year 2005 is …………
a) 267% b) 167 % c) 67% d) None
62. The process of adjusting money wage (or money value) with the help of Price Index is
called……….
a) Deflation b) Inflation c) Change of Base d) Shifting

63. In Index Number, TRT is satisfied when ……….

a) 𝑃 x 𝑄 = 1
b) 𝑃 x 𝑃 = 1
c) 𝑃 x 𝑃 = 𝑉
d) None