Methods of Constructing Index Numbers MCQs
Methods of Constructing Index Numbers – MCQs with Answers & Explanations
Class: 11th |
Subject: Economics (Statistics for Economics) |
Section: Index Numbers |
Topic: Methods of Constructing Index Numbers
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. Methods of constructing index numbers are broadly:
Answer: A
They are Simple and Weighted methods.
They are Simple and Weighted methods.
2. Simple aggregative method formula:
Answer: A
Compares total current prices to base prices.
Compares total current prices to base prices.
3. Simple average of price relatives uses:
Answer: A
Average of individual price relatives.
Average of individual price relatives.
4. Weighted index considers:
Answer: A
Weights reflect relative importance.
Weights reflect relative importance.
5. Laspeyres method uses weights of:
Answer: B
Base year quantities used as weights.
Base year quantities used as weights.
6. Paasche method uses weights of:
Answer: B
Current year quantities used.
Current year quantities used.
7. Fisher’s Ideal Index is:
Answer: B
Geometric mean of Laspeyres & Paasche.
Geometric mean of Laspeyres & Paasche.
8. Weighted aggregative formula includes:
Answer: A
Price × quantity weights.
Price × quantity weights.
9. Main advantage of weighted index:
Answer: A
More realistic measure.
More realistic measure.
10. Simple methods ignore:
Answer: B
All items treated equally.
All items treated equally.
11. Price relative formula:
Answer: A
Individual price comparison.
Individual price comparison.
12. Fisher index satisfies:
Answer: C
Hence called Ideal.
Hence called Ideal.
13. Weighted average relatives use:
Answer: A
Weighted mean calculation.
Weighted mean calculation.
14. Ideal index developer:
Answer: A
Irving Fisher proposed it.
Irving Fisher proposed it.
15. Laspeyres tends to:
Answer: A
Uses outdated base weights.
Uses outdated base weights.
16. Paasche tends to:
Answer: B
Uses current weights.
Uses current weights.
17. Geometric mean used in:
Answer: A
Combines two weighted indices.
Combines two weighted indices.
18. Most accurate index:
Answer: A
Balances both weights.
Balances both weights.
19. Weighted methods consider:
Answer: A
Relative significance of items.
Relative significance of items.
20. Simple methods are:
Answer: B
Because weights ignored.
Because weights ignored.