Index Number Formula MCQs
Index Number Formula – MCQs with Answers & Explanations
Class: 11th |
Subject: Economics (Statistics for Economics) |
Section: Index Numbers |
Topic: Index Number Formula
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. Basic price relative formula is:
Answer: A
Compares current price with base price.
Compares current price with base price.
2. Simple aggregative price index formula:
Answer: A
Total current prices over base prices.
Total current prices over base prices.
3. Laspeyres price index formula:
Answer: A
Uses base year quantities as weights.
Uses base year quantities as weights.
4. Paasche price index formula:
Answer: A
Uses current year quantities.
Uses current year quantities.
5. Fisher’s Ideal Index formula is:
Answer: A
Geometric mean of both indices.
Geometric mean of both indices.
6. Weighted aggregative index uses:
Answer: C
Weights applied through quantities.
Weights applied through quantities.
7. Quantity relative formula:
Answer: A
Measures quantity change.
Measures quantity change.
8. Value index formula:
Answer: A
Compares total values.
Compares total values.
9. Price relative uses:
Answer: A
Each item compared separately.
Each item compared separately.
10. Weighted average relatives formula includes:
Answer: A
Weighted mean of relatives.
Weighted mean of relatives.
11. Base year index value:
Answer: B
Standard reference point.
Standard reference point.
12. Price rise leads index to:
Answer: A
Direct relationship.
Direct relationship.
13. If index = 120:
Answer: A
Prices increased 20%.
Prices increased 20%.
14. Fisher index satisfies:
Answer: C
Hence Ideal index.
Hence Ideal index.
15. Laspeyres bias:
Answer: A
Overestimates inflation.
Overestimates inflation.
16. Paasche bias:
Answer: B
Underestimates inflation.
Underestimates inflation.
17. Index numbers are expressed in:
Answer: A
Relative percentage change.
Relative percentage change.
18. Weight symbol:
Answer: A
Represents importance.
Represents importance.
19. Most accurate formula:
Answer: A
Balances both weights.
Balances both weights.
20. Main purpose of formulas:
Answer: A
Tracks price level movement.
Tracks price level movement.