Consumer Price Index MCQs
Consumer Price Index – MCQs with Answers & Explanations
Class: 11th |
Subject: Economics (Statistics for Economics) |
Section: Index Numbers |
Topic: Consumer Price Index
Board: CBSE Board Examinations
Board: CBSE Board Examinations
These Multiple Choice Questions (MCQs) are designed strictly as per the NCERT syllabus, making them ideal for CBSE Class 11 Board Examination preparation. Each question includes detailed concept‑clearing explanations.
1. CPI stands for:
Answer: A
CPI measures changes in retail prices paid by consumers.
CPI measures changes in retail prices paid by consumers.
2. CPI is also called:
Answer: B
It reflects cost of maintaining a standard of living.
It reflects cost of maintaining a standard of living.
3. CPI measures change in:
Answer: B
It tracks prices consumers actually pay.
It tracks prices consumers actually pay.
4. Base year CPI is:
Answer: C
Standard base = 100.
Standard base = 100.
5. CPI is useful to measure:
Answer: A
Rising CPI indicates inflation.
Rising CPI indicates inflation.
6. CPI basket contains:
Answer: B
Includes goods/services used by households.
Includes goods/services used by households.
7. Weight in CPI shows:
Answer: B
Higher weight → more impact on index.
Higher weight → more impact on index.
8. CPI is compiled by (India):
Answer: B
National Statistical Office compiles CPI.
National Statistical Office compiles CPI.
9. CPI above 100 means:
Answer: B
Prices higher than base year.
Prices higher than base year.
10. CPI below 100 means:
Answer: B
Prices lower than base year.
Prices lower than base year.
11. CPI helps in:
Answer: A
Used to adjust dearness allowance.
Used to adjust dearness allowance.
12. CPI formula (weighted):
Answer: B
Weights multiplied with price relatives.
Weights multiplied with price relatives.
13. CPI reflects:
Answer: B
Consumer expenditure level.
Consumer expenditure level.
14. Basket revision ensures:
Answer: A
Reflects current consumption pattern.
Reflects current consumption pattern.
15. CPI is a:
Answer: A
Measures price change.
Measures price change.
16. Inflation rate derived from:
Answer: A
Year‑to‑year CPI growth.
Year‑to‑year CPI growth.
17. CPI relates to:
Answer: B
Focuses on households.
Focuses on households.
18. Major use in policy:
Answer: A
Central banks monitor CPI inflation.
Central banks monitor CPI inflation.
19. CPI indicates:
Answer: A
Tracks living expenses.
Tracks living expenses.
20. CPI is expressed in:
Answer: A
Index numbers are percentage relatives.
Index numbers are percentage relatives.
