Laspeyres & Paasche Index MCQs
Laspeyres & Paasche Index – MCQs with Answers & Explanations
Class: 11th |
Subject: Economics (Statistics for Economics) |
Section: Index Numbers |
Topic: Laspeyres & Paasche 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. Laspeyres Index uses weights of:
Answer: B
Base year quantities are used as weights.
Base year quantities are used as weights.
2. Paasche Index uses weights of:
Answer: B
Current year quantities are taken as weights.
Current year quantities are taken as weights.
3. Laspeyres formula includes:
Answer: A
Uses base year quantities.
Uses base year quantities.
4. Paasche formula includes:
Answer: A
Uses current year quantities.
Uses current year quantities.
5. Laspeyres tends to:
Answer: A
Uses outdated base weights.
Uses outdated base weights.
6. Paasche tends to:
Answer: B
Uses current weights reflecting substitution.
Uses current weights reflecting substitution.
7. Both indices are:
Answer: B
They use quantity weights.
They use quantity weights.
8. Fisher Index combines:
Answer: A
Geometric mean of both indices.
Geometric mean of both indices.
9. Weight in Laspeyres is:
Answer: B
Base year quantity.
Base year quantity.
10. Weight in Paasche is:
Answer: B
Current year quantity.
Current year quantity.
11. More realistic index:
Answer: B
Uses current consumption pattern.
Uses current consumption pattern.
12. Easier to compute:
Answer: A
Base year data fixed.
Base year data fixed.
13. Paasche requires:
Answer: A
Needs updated quantities.
Needs updated quantities.
14. Both measure:
Answer: A
They are price indices.
They are price indices.
15. If both equal:
Answer: A
Consumption unchanged.
Consumption unchanged.
16. Fisher index is:
Answer: A
Balances both biases.
Balances both biases.
17. Bias in Laspeyres:
Answer: A
Overstates inflation.
Overstates inflation.
18. Bias in Paasche:
Answer: B
Understates inflation.
Understates inflation.
19. Both are:
Answer: A
They use price × quantity weights.
They use price × quantity weights.
20. Ideal solution for bias:
Answer: A
Geometric mean removes bias.
Geometric mean removes bias.