Simple & Weighted Index MCQs
Simple & Weighted Index Numbers – MCQs with Answers & Explanations
Class: 11th |
Subject: Economics (Statistics for Economics) |
Section: Index Numbers |
Topic: Simple & Weighted 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. Simple index numbers ignore:
Answer: C
All items are treated equally.
All items are treated equally.
2. Weighted index numbers consider:
Answer: A
Weights reflect relative importance.
Weights reflect relative importance.
3. Simple aggregative formula:
Answer: A
Compares total prices.
Compares total prices.
4. Weighted aggregative index includes:
Answer: C
Weights multiplied with prices.
Weights multiplied with prices.
5. Weighted indices are:
Answer: A
Reflect real consumption importance.
Reflect real consumption importance.
6. Simple average relatives use:
Answer: A
Average price relatives.
Average price relatives.
7. Weighted average relatives use:
Answer: A
Weighted mean applied.
Weighted mean applied.
8. Example weight:
Answer: A
Represents spending share.
Represents spending share.
9. Main limitation of simple index:
Answer: A
All items treated equally.
All items treated equally.
10. Weighted index improves:
Answer: A
Reflects realistic structure.
Reflects realistic structure.
11. CPI is a:
Answer: A
Uses consumption weights.
Uses consumption weights.
12. WPI is generally:
Answer: A
Uses commodity weights.
Uses commodity weights.
13. Weight symbol:
Answer: A
Represents importance.
Represents importance.
14. Simple indices are easier because:
Answer: A
Less computation required.
Less computation required.
15. Weighted index requires:
Answer: A
Needs price & quantity data.
Needs price & quantity data.
16. More scientific method:
Answer: A
Reflects real importance.
Reflects real importance.
17. If all weights equal:
Answer: A
Equal importance assumption.
Equal importance assumption.
18. Weighted index reduces:
Answer: A
Improves reliability.
Improves reliability.
19. Price relative × weight gives:
Answer: A
Used in weighted averages.
Used in weighted averages.
20. Best method for accuracy:
Answer: A
Because it considers importance.
Because it considers importance.