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Commerce Exam  >  Commerce Tests  >  Statistics for Economics - Class XI  >  Test: Index Numbers - Commerce MCQ

Test: Index Numbers - Commerce MCQ


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10 Questions MCQ Test Statistics for Economics - Class XI - Test: Index Numbers

Test: Index Numbers for Commerce 2024 is part of Statistics for Economics - Class XI preparation. The Test: Index Numbers questions and answers have been prepared according to the Commerce exam syllabus.The Test: Index Numbers MCQs are made for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Index Numbers below.
Solutions of Test: Index Numbers questions in English are available as part of our Statistics for Economics - Class XI for Commerce & Test: Index Numbers solutions in Hindi for Statistics for Economics - Class XI course. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free. Attempt Test: Index Numbers | 10 questions in 10 minutes | Mock test for Commerce preparation | Free important questions MCQ to study Statistics for Economics - Class XI for Commerce Exam | Download free PDF with solutions
Test: Index Numbers - Question 1
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What does the Human Development Index (HDI) seek to capture?

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The Human Development Index (HDI) seeks to capture three crucial aspects of human development: access to education and knowledge, a reasonable standard of living, and good health and longevity. It is used to gauge the extent to which development positively impacts the quality of life for humans.
Test: Index Numbers - Question 2
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Which index measures the performance of various industrial sectors in the Indian economy?

Detailed Solution for Test: Index Numbers - Question 2
The Index of Industrial Production (IIP) measures the performance of various industrial sectors in the Indian economy. It reflects short-term changes in the volume of production for a basket of industrial products and is published monthly by the Central Statistical Organisation (CSO) in India.
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Test: Index Numbers - Question 3
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What is the Consumer Price Index (CPI) primarily used for?

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The Consumer Price Index (CPI) is primarily used for reflecting fluctuations in the price level of consumer goods and services. It is an essential tool for assessing changes in inflation and deflation by tracking a representative sample of items purchased by households.
Test: Index Numbers - Question 4
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What is the main purpose of constructing index numbers?
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The main purpose of constructing index numbers is to measure differences in the magnitude of a set of related variables. Index numbers are statistical tools used to provide an overall indication of trends in these variables.
Test: Index Numbers - Question 5
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What is the purpose of selecting a base year in constructing index numbers?
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Selecting a base year in constructing index numbers serves as a reference period for comparison. It provides a benchmark against which changes in related variables can be measured.
Test: Index Numbers - Question 6
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What is the significance of using weighted index numbers?
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Weighted index numbers are significant because they reflect changes in the quantity of items. By assigning weights based on quantity, they provide a more accurate representation of changes in related variables.
Test: Index Numbers - Question 7
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Which method of constructing index numbers involves dividing the weighted sum of price relatives by the total sum of weights?
Detailed Solution for Test: Index Numbers - Question 7
The method that involves dividing the weighted sum of price relatives by the total sum of weights is the "Weighted Average of Price Relative Method." This method assigns weights to goods based on their quantity and is used in constructing weighted index numbers.
Test: Index Numbers - Question 8
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Which index is used to track movements in the Indian stock market?
Detailed Solution for Test: Index Numbers - Question 8
The Sensex, also known as the Bombay Stock Exchange (BSE) Sensitive Index, is used to track movements in the Indian stock market. It comprises 30 financially sound and established organizations listed on the BSE and is a key indicator of stock market performance in India.
Test: Index Numbers - Question 9
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How do index numbers help in adjusting salaries and allowances?
Detailed Solution for Test: Index Numbers - Question 9
Index numbers help in adjusting salaries and allowances by reflecting changes in the price level. When prices rise or fall, index numbers provide a basis for making adjustments to ensure that the real value of income is maintained.
Test: Index Numbers - Question 10
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What is the primary purpose of the Wholesale Price Index (WPI)?
Detailed Solution for Test: Index Numbers - Question 10
The primary purpose of the Wholesale Price Index (WPI) is to reflect price changes of wholesale goods in manufacturing and industry. Unlike the Consumer Price Index (CPI), which focuses on consumer goods and services, the WPI primarily tracks goods traded between corporations. It helps assess the demand and supply of goods in the industrial sectors, making it a valuable tool for economic analysis.
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