Index Numbers MCQs Class 11
Index Numbers – MCQs with Answers & Explanations
Class: 11th |
Subject: Economics (Statistics for Economics) |
Section: Index Numbers |
Topic: Index Numbers MCQs Class 11
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. An index number measures:
Answer: B
Index numbers measure relative change in variables over time.
Index numbers measure relative change in variables over time.
2. Base year index is usually:
Answer: C
Base year value is taken as 100 for comparison.
Base year value is taken as 100 for comparison.
3. Price index measures change in:
Answer: B
Shows inflation/deflation trends.
Shows inflation/deflation trends.
4. Quantity index measures:
Answer: A
Tracks production or consumption volume.
Tracks production or consumption volume.
5. Value index combines:
Answer: C
Value = Price × Quantity.
Value = Price × Quantity.
6. Simple index formula:
Answer: A
Current price over base price ×100.
Current price over base price ×100.
7. CPI stands for:
Answer: A
Measures retail inflation.
Measures retail inflation.
8. WPI measures:
Answer: B
Tracks bulk trade price change.
Tracks bulk trade price change.
9. Base year should be:
Answer: B
Normal year ensures fair comparison.
Normal year ensures fair comparison.
10. Fixed base index compares:
Answer: B
Same base year used throughout.
Same base year used throughout.
11. Chain base index compares:
Answer: B
Each year linked to preceding year.
Each year linked to preceding year.
12. Index >100 shows:
Answer: B
Indicates rise over base year.
Indicates rise over base year.
13. Index <100 shows:
Answer: B
Value lower than base year.
Value lower than base year.
14. Main use:
Answer: A
Tracks price level changes.
Tracks price level changes.
15. Index numbers are expressed in:
Answer: A
Base = 100 percent.
Base = 100 percent.
16. Time series tool:
Answer: A
Measures change over time.
Measures change over time.
17. Inflation rises when index:
Answer: B
Higher price index → inflation.
Higher price index → inflation.
18. Deflation when index:
Answer: B
Price level decreases.
Price level decreases.
19. Weight refers to:
Answer: A
Represents relative importance.
Represents relative importance.
20. Most common index:
Answer: A
Consumer Price Index widely used.
Consumer Price Index widely used.