CA Foundation Exam > CA Foundation Questions > The suitable index numbers for the comparison...
Start Learning for Free
The suitable index numbers for the comparison of every year is ____
- a)Fixed base index number
- b)Fisher’s ideal index number
- c)Chain base index number
- d)Both a) and c)
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
The suitable index numbers for the comparison of every year is ____a)F...
The suitable index numbers for the comparison of every year is Chain base index number.
Explanation:
Index numbers are a statistical tool used to measure the changes in the price level of goods and services over time. They are used to compare the current level of a variable with its previous level or with the level of some base year. There are various types of index numbers, including fixed base index numbers, chain base index numbers, and Fisher's ideal index numbers.
Fixed base index number:
A fixed base index number is a type of index number in which the base year remains constant throughout the life of the index. In other words, the base year is fixed and does not change over time. Fixed base index numbers are useful for comparing the prices of goods and services over a long period of time. However, they are not suitable for comparing the prices of goods and services over short periods of time.
Fishers ideal index number:
Fishers ideal index number is a type of index number that is used to measure the changes in the price level of goods and services over time. It is based on the geometric mean of the price relatives. Fisher's ideal index number is considered to be the most accurate measure of the changes in the price level of goods and services over time.
Chain base index number:
A chain base index number is a type of index number in which the base year changes over time. In other words, the base year is changed every year or every few years to reflect the current price level of goods and services. Chain base index numbers are suitable for comparing the prices of goods and services over short periods of time. They are also useful for measuring the changes in the price level of goods and services over a long period of time.
Conclusion:
The suitable index numbers for the comparison of every year is chain base index number as it is suitable for comparing the prices of goods and services over short periods of time and also useful for measuring the changes in the price level of goods and services over a long period of time.
Explanation:
Index numbers are a statistical tool used to measure the changes in the price level of goods and services over time. They are used to compare the current level of a variable with its previous level or with the level of some base year. There are various types of index numbers, including fixed base index numbers, chain base index numbers, and Fisher's ideal index numbers.
Fixed base index number:
A fixed base index number is a type of index number in which the base year remains constant throughout the life of the index. In other words, the base year is fixed and does not change over time. Fixed base index numbers are useful for comparing the prices of goods and services over a long period of time. However, they are not suitable for comparing the prices of goods and services over short periods of time.
Fishers ideal index number:
Fishers ideal index number is a type of index number that is used to measure the changes in the price level of goods and services over time. It is based on the geometric mean of the price relatives. Fisher's ideal index number is considered to be the most accurate measure of the changes in the price level of goods and services over time.
Chain base index number:
A chain base index number is a type of index number in which the base year changes over time. In other words, the base year is changed every year or every few years to reflect the current price level of goods and services. Chain base index numbers are suitable for comparing the prices of goods and services over short periods of time. They are also useful for measuring the changes in the price level of goods and services over a long period of time.
Conclusion:
The suitable index numbers for the comparison of every year is chain base index number as it is suitable for comparing the prices of goods and services over short periods of time and also useful for measuring the changes in the price level of goods and services over a long period of time.
Free Test
FREE
| Start Free Test |
Community Answer
The suitable index numbers for the comparison of every year is ____a)F...
A
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
The suitable index numbers for the comparison of every year is ____a)Fixed base index numberb)Fisher’s ideal index numberc)Chain base index numberd)Both a) and c)Correct answer is option 'C'. Can you explain this answer?
Question Description
The suitable index numbers for the comparison of every year is ____a)Fixed base index numberb)Fisher’s ideal index numberc)Chain base index numberd)Both a) and c)Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The suitable index numbers for the comparison of every year is ____a)Fixed base index numberb)Fisher’s ideal index numberc)Chain base index numberd)Both a) and c)Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The suitable index numbers for the comparison of every year is ____a)Fixed base index numberb)Fisher’s ideal index numberc)Chain base index numberd)Both a) and c)Correct answer is option 'C'. Can you explain this answer?.
The suitable index numbers for the comparison of every year is ____a)Fixed base index numberb)Fisher’s ideal index numberc)Chain base index numberd)Both a) and c)Correct answer is option 'C'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The suitable index numbers for the comparison of every year is ____a)Fixed base index numberb)Fisher’s ideal index numberc)Chain base index numberd)Both a) and c)Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The suitable index numbers for the comparison of every year is ____a)Fixed base index numberb)Fisher’s ideal index numberc)Chain base index numberd)Both a) and c)Correct answer is option 'C'. Can you explain this answer?.
Solutions for The suitable index numbers for the comparison of every year is ____a)Fixed base index numberb)Fisher’s ideal index numberc)Chain base index numberd)Both a) and c)Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of The suitable index numbers for the comparison of every year is ____a)Fixed base index numberb)Fisher’s ideal index numberc)Chain base index numberd)Both a) and c)Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
The suitable index numbers for the comparison of every year is ____a)Fixed base index numberb)Fisher’s ideal index numberc)Chain base index numberd)Both a) and c)Correct answer is option 'C'. Can you explain this answer?, a detailed solution for The suitable index numbers for the comparison of every year is ____a)Fixed base index numberb)Fisher’s ideal index numberc)Chain base index numberd)Both a) and c)Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of The suitable index numbers for the comparison of every year is ____a)Fixed base index numberb)Fisher’s ideal index numberc)Chain base index numberd)Both a) and c)Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice The suitable index numbers for the comparison of every year is ____a)Fixed base index numberb)Fisher’s ideal index numberc)Chain base index numberd)Both a) and c)Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup