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This mock test of Test: Index Numbers- 6 for CA Foundation helps you for every CA Foundation entrance exam.
This contains 40 Multiple Choice Questions for CA Foundation Test: Index Numbers- 6 (mcq) to study with solutions a complete question bank.
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QUESTION: 1

With regard to Laspeyre and Paasche price index numbers, it is maintained that If the Prices of all the goods change in the same ratio, the two indices will be equal for them the weighting system is irrelevant; or if the quantities of all the goods change in the same ratio, they will be equal, for them the two weighting systems are the same relatively. Then the above statements satisfy.

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QUESTION: 2

Circular Test is satisfied by

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QUESTION: 3

The price level of a country in a certain year has increased 25% over the base period. The index number is

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QUESTION: 4

If the ratio between Laspeyre index number and Paasche Index number is 28:27. Then the missing figure in the following table P is:

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QUESTION: 5

Paasche index is based on

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QUESTION: 6

Fisher ideal index number is

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QUESTION: 7

Time reversal Test is satisfied by following index number formula is

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QUESTION: 8

If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on average by

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QUESTION: 9

The factor reversal test is satisfied by

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QUESTION: 10

Fisher index number is based on

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QUESTION: 11

The circular test is satisfied by

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QUESTION: 12

If the prices of all commodities in a place have increased 1.25 times in comparison to the base period, the index number of prices of that place now is

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QUESTION: 13

If the prices of all commodities in a place have decreased 35% over the base period prices, then the index number of prices of that place is now

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QUESTION: 14

The time reversal test is satisfied by

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QUESTION: 15

The best average for constructing an index numbers is

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QUESTION: 16

Simple aggregate of quantities is a type of

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QUESTION: 17

Theoretically, G.M. is the best average in the construction of index numbers. but in practise, mostly the A.M. is used

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QUESTION: 18

Laspeyre or Paasche or the Fisher ideal index do not satisfy

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QUESTION: 19

Fisher Ideal Formula does not satisfy _________test

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QUESTION: 20

Laspeyre and Paasche method _________time reversal test

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QUESTION: 21

The number of test of Adequacy is

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QUESTION: 22

There is no such thing as unweighted index numbers

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QUESTION: 23

The test of shifting the base is called

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QUESTION: 24

Each of the following statements is either True or False. Write your choice of the answer by writing F for false.

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QUESTION: 25

_______________is concerned with the measurement of price changes over a period of years, when it is desirable to shift the base

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QUESTION: 26

We use price index numbers

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QUESTION: 27

Each of the following statements is either True or False write your choice of the answer by writing T for True

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QUESTION: 28

________________satisfies circular test

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QUESTION: 29

The ratio of price of single commodity in a given period to its price in another period is called the

Solution:

**Option (a) base period is right answer. **

**Explanation:- **

**Base period or reference period refers to the period of time used as the basis for an index number, for comparison with other periods **

QUESTION: 30

When the product of price index and the quantity index is equal to the corresponding value index then the test that holds is

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QUESTION: 31

Index numbers are often constructed from the

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QUESTION: 32

Laspeyre method and Paasche method do not satisfy

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QUESTION: 33

P_{10} is the index for time

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QUESTION: 34

P_{01} is the index for time

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QUESTION: 35

The formula should be independent of the unit in which or for which price and quantities are quoted in

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QUESTION: 36

____________is a point of reference in comparing various data describing individual behaviour.

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QUESTION: 37

Fisher Ideal Formula for calculating index numbers satisfied the __________tests

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QUESTION: 38

The purpose determines the type of index number to use

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QUESTION: 39

The index number is a special type of average

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QUESTION: 40

The choice of suitable base period is at best temporary solution

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