Cost of Living Index MCQs
Cost of Living Index – MCQs with Answers & Explanations
Class: 11th |
Subject: Economics (Statistics for Economics) |
Section: Index Numbers |
Topic: Cost of Living 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. Cost of Living Index is also called:
Answer: B
It measures cost of maintaining a given standard of living.
It measures cost of maintaining a given standard of living.
2. It measures change in:
Answer: B
Tracks household consumption cost.
Tracks household consumption cost.
3. Base year value is:
Answer: C
Standard index base.
Standard index base.
4. Rise in index indicates:
Answer: B
Living expenses increase.
Living expenses increase.
5. It helps in determining:
Answer: A
Used for DA & wage revision.
Used for DA & wage revision.
6. Basket includes:
Answer: A
Represents household consumption.
Represents household consumption.
7. Weight indicates:
Answer: A
Higher share → higher weight.
Higher share → higher weight.
8. Major use:
Answer: A
Measures retail inflation.
Measures retail inflation.
9. If index = 150:
Answer: B
Cost increased by 50%.
Cost increased by 50%.
10. Below 100 indicates:
Answer: B
Cost decreased.
Cost decreased.
11. Constructed using:
Answer: A
Uses consumption weights.
Uses consumption weights.
12. Shows purchasing power of:
Answer: A
Higher index → lower purchasing power.
Higher index → lower purchasing power.
13. Used by:
Answer: A
Policy & wage decisions.
Policy & wage decisions.
14. Indicates standard of:
Answer: A
Cost to maintain lifestyle.
Cost to maintain lifestyle.
15. Includes expenditure on:
Answer: D
Complete consumption basket.
Complete consumption basket.
16. Reflects inflation for:
Answer: A
Household price burden.
Household price burden.
17. Revision ensures:
Answer: A
Reflects updated consumption.
Reflects updated consumption.
18. Expressed in:
Answer: A
Index percentage relatives.
Index percentage relatives.
19. Higher index means:
Answer: A
Expenses rise.
Expenses rise.
20. Main objective:
Answer: A
Tracks cost of maintaining living standard.
Tracks cost of maintaining living standard.
