CA Foundation Exam > CA Foundation Questions > If the index number of prices at a place in 1...
Start Learning for Free
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
- a)250%
- b)150%
- c)350%
- d)None of these.
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
If the index number of prices at a place in 1994 is 250 with 1984 as b...
Index number is a specialized average designed to measure the change in the level of an activity or item, either with respect to time or geographic location or some other characteristic. It is described either as a ratio or a percentage. For example, when we say that consumer price index for 1998 is 175 compared to 1991, it means that consumer prices have risen by 75% over these seven years.
View all questions of this test
Most Upvoted Answer
If the index number of prices at a place in 1994 is 250 with 1984 as b...
Calculation of Price Increase
To calculate the percentage increase in prices, we need to use the following formula:
Percentage increase = (Current index number – Base index number) / Base index number × 100
Given that the base year is 1984 and the index number of prices in 1994 is 250, we can calculate the percentage increase as follows:
Percentage increase = (250 – 100) / 100 × 100 = 150%
Therefore, the prices have increased on average by 150%.
Explanation of the Solution
The index number of prices is a measure of the average level of prices in a given year compared to a base year. In this case, the base year is 1984, and the index number of prices in 1994 is 250. This means that the average level of prices in 1994 is 250% of the level of prices in 1984.
To calculate the percentage increase in prices, we need to compare the index number of prices in 1994 to the base index number of 100 (which represents the level of prices in 1984). We subtract the base index number from the current index number, divide the result by the base index number, and multiply by 100 to get the percentage increase.
In this case, the percentage increase is 150%, which means that the prices have increased on average by 150%. This makes option B the correct answer.
To calculate the percentage increase in prices, we need to use the following formula:
Percentage increase = (Current index number – Base index number) / Base index number × 100
Given that the base year is 1984 and the index number of prices in 1994 is 250, we can calculate the percentage increase as follows:
Percentage increase = (250 – 100) / 100 × 100 = 150%
Therefore, the prices have increased on average by 150%.
Explanation of the Solution
The index number of prices is a measure of the average level of prices in a given year compared to a base year. In this case, the base year is 1984, and the index number of prices in 1994 is 250. This means that the average level of prices in 1994 is 250% of the level of prices in 1984.
To calculate the percentage increase in prices, we need to compare the index number of prices in 1994 to the base index number of 100 (which represents the level of prices in 1984). We subtract the base index number from the current index number, divide the result by the base index number, and multiply by 100 to get the percentage increase.
In this case, the percentage increase is 150%, which means that the prices have increased on average by 150%. This makes option B the correct answer.
Free Test
FREE
| Start Free Test |
Community Answer
If the index number of prices at a place in 1994 is 250 with 1984 as b...
Its 150% as in the base year, 100 is taken as base value
...so 250-100=150% is the required increase in prices!:)
...so 250-100=150% is the required increase in prices!:)
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on averagea)250%b)150%c)350%d)None of these.Correct answer is option 'B'. Can you explain this answer?
Question Description
If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on averagea)250%b)150%c)350%d)None of these.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on averagea)250%b)150%c)350%d)None of these.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on averagea)250%b)150%c)350%d)None of these.Correct answer is option 'B'. Can you explain this answer?.
If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on averagea)250%b)150%c)350%d)None of these.Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on averagea)250%b)150%c)350%d)None of these.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on averagea)250%b)150%c)350%d)None of these.Correct answer is option 'B'. Can you explain this answer?.
Solutions for If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on averagea)250%b)150%c)350%d)None of these.Correct answer is option 'B'. 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 If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on averagea)250%b)150%c)350%d)None of these.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on averagea)250%b)150%c)350%d)None of these.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on averagea)250%b)150%c)350%d)None of these.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on averagea)250%b)150%c)350%d)None of these.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the prices have increased on averagea)250%b)150%c)350%d)None of these.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup