Chapter#9
Final Practice MCQ’s
125) The price relatives of three commodities are given below:
Year A B C
2013 100 110 112
2014 108 100 100
The chain indices for each commodity are:
a) 92, 110 and 112 respectively b) 108, 90 and 112 respectively
c) 108, 90 and 89 respectively d) 108, 100 and 102 respectively
126) The prices of commodity in different years is given below:
Years Prices
2010 49
2011 53
2012 58
2013 62
Determine the chain indices in the above case:
a) 100,105.5,118.40,112.80 b) 100,108.16,109.43,106.90
c) 100,92.50,91.40,93.55 d) 100,105.50,116.50,114.50
127) Following CPI has been computed taking 2008 as base year.
Year CPI
2008 104.98
2009 100.00
2010 116.19
2011 115.11
2012 132.01
Yearly inflation/ deflation for the above data shall be?
a) 100%, (4.98%), 5.83%, 7.75%, 12.80% b) 100%, (4.98%), 6.19%, 8.41%, 14.69%
c) 100%, (4.74%), 6.19%, 8.40%, 14.68% d) 100%, (4.74%), 6.19%, (8.40%), 14.68%
128) ΣPoQo = 70.5, ΣP1Q1 = 72, ΣP1Qo = 60, ΣPoQ1 = 73
Find the Fisher’s Price Index?
a) 107.65% b) 91.61% c)109.15% d) 92.89%
129) Consumer Price index of a country in year-1 is 140 it increases in yyear-2 by 8%, in year-3 it
decreases by 10%, then again increases by 8% in year-4 then again decreases by 10% in year-5.
Find index of last year.
a) 151 b) 136 c) 147 d) 132
130) Which of the following statement is/are correct?
1) In Laspeyre price index, the denominator does not change from year to year.
Indices
2) Laspeyre price index is used more than the Paasche price index in practice.
3) In Paasche’s price index, the denominator has to be recalculated every year to
take account of the most recent quantities consumed
a) Only statement 1 is correct b) Only statement 2 is correct
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c) Only statements are correct d) All are correct
131) The price of a Bags during past five years is as follows:
Year Price (Rs.)
20X7 3,000
20X8 3,500
20X9 3,800
20Y0 5,000
20Y1 4,300
Keeping 20X8 as base year, simple index numbers relative to price for the given period would
be:
a) 85.71, 100, 108.57, 122.86, 142.86 b) 85.71, 100, 108.57, 142.86, 122.86
c) 85.71, 100, 108.57, 142.86, 120.85 d) 100, 85.71, 106.67, 142.86, 142.86
132) The prices of commodity in different years are given below:
Year Prices
2010 49
2011 53
2012 58
2013 62
The chain indices in the above case would be :
a) 100,92.50,91.40,93.55 b) 100, 108.16, 109.43, 106.90
c) 100, 105.50, 118.40, 112.80 d) 100, 105.50, 116.50, 114.50
133) The index that uses quantities of base period as weights, is known as:
a) Laspeyre’s index b) Paasche’s index c) Fisher’s index d) Both (a) and (b)
134) Which of the following is correct about Laspeyre price index?
a) It has a focus which is biased to the cheaper items bought by consumers as a result of
inflation.
b) The denominator in the Laspeyre price index has to be recalculated every year to take
account of the most recent quantities consumed.
c) It is based on the most recent quantities purchased
d) It tends to overstate inflation
135) Consider following data
Jan 2012 (Base Period) Dec 2015 (current period)
Ingredients
Price per kg Kg per unit Price per kg Kg per unit
A 3.00 10.00 3.95 11.00
B 9.00 3.00 9.90 2.50
C 1.00 2.00 0.95 3.00
D 2.00 2.00 4.50 5.00
Using Paasche Price index as at Dec 2015, which of the following statement is correct?
Indices
a) Prices have risen by 8.73% between Jan 2012 and Dec 2015
b) Prices have risen by 16.79% between Jan 2012 and Dec 2015
c) Prices have risen by 27.14% between Jan 2012 and Dec 2015
d) Prices have risen by 36.57% between Jan 2012 and Dec 2015
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