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Test: Index Numbers- 4 - CA Foundation MCQ


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30 Questions MCQ Test - Test: Index Numbers- 4

Test: Index Numbers- 4 for CA Foundation 2024 is part of CA Foundation preparation. The Test: Index Numbers- 4 questions and answers have been prepared according to the CA Foundation exam syllabus.The Test: Index Numbers- 4 MCQs are made for CA Foundation 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Index Numbers- 4 below.
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Test: Index Numbers- 4 - Question 1

The prices of a commodity in the year 1975 and 1980 were 25 and 30 respectively taking 1980 as base year the price relative is :

Detailed Solution for Test: Index Numbers- 4 - Question 1

Taking 1980 as base year......

Pn/p0*100

Then,

25/30*100

=83.3333

And the answer is 83.33

Test: Index Numbers- 4 - Question 2

The average price of certain commodities in 1980 was Rs. 60 and the average price of the same commodities in 1982 was Rs. 120. Therefore, the increase in 1982 on the basis of 1980 was 100%. 80 the decrease should have been 100% in 1980 using 1982, comment on the above statement is :

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Test: Index Numbers- 4 - Question 3

Cost of living index (C.L.I.) numbers are also used to find real wages by the process of

Test: Index Numbers- 4 - Question 4

From the following data

 

Q. The Passche price Index number is : 

Test: Index Numbers- 4 - Question 5

From the following data

 

Q. The Marshall Edge worth Index number is : 

Test: Index Numbers- 4 - Question 6

The circular Test is an extension of

Test: Index Numbers- 4 - Question 7

Circular test, an index constructed for the year ‘x’ on the base year ‘y’ and for the year ‘y’ on the base year ‘z’ should yield the same result as an index constructed for ‘x’ on base year ‘z’ i.e. I0,1 x I1,2 x I2,0 equal is :

Test: Index Numbers- 4 - Question 8

In 1976 the average price of a commodity was 20% more than that in 1975 but 20% less than that in 1974 and more over it was 50% more than that in 1977. The price relatives using 1975 as base year (1975 price relative = 100) then the reduce date is :

Test: Index Numbers- 4 - Question 9

Time Reversal Test is represented by symbolically is :

Test: Index Numbers- 4 - Question 10

The prices of a commodity in the years 1975 and 1980 were 25 and 30 respectively, taking 1975 as base year the price relative is :

Test: Index Numbers- 4 - Question 11

From the following data

 

Q. (Base 1992 = 100) for the year 1993–97. The construction of chain index is :

Test: Index Numbers- 4 - Question 12

During a certain period the cost of living index number goes up from 110 to 200 and the salary of a worker is also raised from Rs. 325 to Rs. 500. The worker does not get really gain. Then the real wages decreased by :

Detailed Solution for Test: Index Numbers- 4 - Question 12

Firstly, we will calculate by how much the living index number increase, i.e.

200/110 = 1.818

Now, we'll multiply this factor by the wages before increase, so as to calculate the final increased wages for maintaining the right balance.

Rs 325 * 1.818 = Rs. 590.90

Hence, the real wages decrease by Rs.590.90 - Rs.500 = Rs.90.90

Test: Index Numbers- 4 - Question 13

Net monthly salary of an employee was Rs. 3000 in 1980. The consumer price index number in 1985 is 250 with 1980 as base year. If the has to be rightly compensated. Then 7th dearness allowances to be paid to the employee is :

Test: Index Numbers- 4 - Question 14

Net Monthly income of an employee was Rs. 800 in 1980. The consumer price Index number was 160 in 1980. It is rises to 200 in 1984. If he has to be rightly compensated. The additional dearness allowance to be paid to the employee is :

Test: Index Numbers- 4 - Question 15

When the cost of Tobacco was increased by 50%, a certain hardened smoker, who maintained his formal scale of consumption, said that the rise had increased his cost of living by 5%. Before the change in price, the percentage of his cost of living was due to buying Tobacco is

Test: Index Numbers- 4 - Question 16

If the price index for the year, say 1960 be 110.3 and the price index for the year, say 1950 be 98.4. Then the purchasing power of money (Rupees) of 1950 will be of 1960 is

Test: Index Numbers- 4 - Question 17

When index number is calculated for several variables, it is called: 

Detailed Solution for Test: Index Numbers- 4 - Question 17

⇒  When index number is calculated for several variables, it is called : Composite Index. 
⇒  A composite index number is formed by combining two or more index numbers, and a weighting is usually given to each of the indexes in order to calculate the weighted average index number. 
⇒  A composite index number is a number that measures an average relative change in a group of relative variables with respect to a base.

Test: Index Numbers- 4 - Question 18

The consumer price Index for April 1985 was 125. The food price index was 120 and other items index was 135. The percentage of the total weight of the index is

Test: Index Numbers- 4 - Question 19

The total value of retained imports into India in 1960 was Rs. 71.5 million per month. The corresponding total for 1967 was Rs. 87.6 million per month. The index of volume of retained imports in 1967 composed with 1960 (= 100) was 62.0. The price index for retained inputs for 1967 our 1960 as base is

Test: Index Numbers- 4 - Question 20

During the certain period the C.L.I. gives up from 110 to 200 and the Salary of a worker is also raised from 330 to 500, then the real terms is

Test: Index Numbers- 4 - Question 21

From the following data

 

Q. Then the fisher’s quantity index number is

Test: Index Numbers- 4 - Question 22

From the following data

 

Q. Then index numbers from G. M. Method is :

Test: Index Numbers- 4 - Question 23

Using the following data

 

Q. The Paasche’s formula for index is :

Test: Index Numbers- 4 - Question 24

Group index number is represented by

Test: Index Numbers- 4 - Question 25

 The quantity Index number using Fisher formula satisfies:

Test: Index Numbers- 4 - Question 26

For constructing consumer price Index is used:

Test: Index Numbers- 4 - Question 27

 If the 1970 index with base 1965 is 200 and 1965 index with base 1960 is 150, the index 1970 on base 1960 will be:

Detailed Solution for Test: Index Numbers- 4 - Question 27

Test: Index Numbers- 4 - Question 28

 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.

Test: Index Numbers- 4 - Question 29

In 1996 the average price of a commodity was 20% more than in 1995 but 20% less than in 1994; and more over it was 50% more than in 1997 to price relatives using 1995 as base (1995 price relative 100) Reduce the data is:

Detailed Solution for Test: Index Numbers- 4 - Question 29

Let price in 1995 be Rs. 100. as the relations is given with 1995.
In 1996, it is 20% less than 1995.
Price in 1994 = 100 + 20% of 100
= 100 + 20
= 120
Price in 1996 is 20% less than 1994.
Let the price in 1994 be x.
Price in 1996 = x - 20% of x
120 = x - 0.2x
120 = 0.8x
x = 120/ 0.8
= 150.
Price in 1996 is 50% more than 1997.
Let price in 1997 be y.
Price in 1996 = y + 50% of x
120 = y + 0.5y
120 = 1.5y
y = 120/ 1.5
= 80.
So prices are 150, 100, 120, 80

Test: Index Numbers- 4 - Question 30

The value index is equal to:

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