This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Economics Statistics For Economics > Class 11 Economics (Statistics For Economics) Chapter 8 Index Numbers – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Economics (Statistics For Economics) Chapter 8 Index Numbers Quiz 2 (29 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. While constructing Index numbers, as many commodities must be selected as possible to give it a wider base. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 2. Index number for base year is always considered as A) 100. B) 1. C) 1000. D) 0. Show Answer Correct Answer: A) 100. 3. *Index numbers are expressed in terms of A) Ratio. B) Percentage. C) All the above. D) None of the above. Show Answer Correct Answer: B) Percentage. 4. In Laspeyre's Price index is 324 Paasche's Price index is 144 then Fisher's ideal index is A) 234. B) 216. C) 243. D) 261. Show Answer Correct Answer: B) 216. 5. A period for which index number is determined is called as A) Base period. B) Normal period. C) Current period. D) None of the above. Show Answer Correct Answer: C) Current period. 6. The condition for Factor Reversal test A) P01 + Q01 =V01. B) P01 * Q01 =V01. C) P01 * Q01 =1. D) P01 + Q01 = 1. Show Answer Correct Answer: B) P01 * Q01 =V01. 7. The regression line of Y on X is 5x-7y=10, then the regression coefficient of Y on X is A) $\frac{10}{7}$. B) $\frac{-7}{5}$. C) $\frac{7}{5}$. D) $\frac{5}{7}$. Show Answer Correct Answer: D) $\frac{5}{7}$. 8. The price of the house Sulaiman bought in the year 1998 wasRM 110000. In the year 2000, the price of the house went up toRM 130000. Calculate the price index of the house for the year 2000 based on the year 1998. A) 118.18. B) 119. C) 118. D) 118.20. Show Answer Correct Answer: A) 118.18. 9. The process of constructing a mathematical model or function that can be used to predict or determine one variable by another variable is called A) Outlier plot. B) Residual. C) Regression. D) Correlation. Show Answer Correct Answer: C) Regression. 10. The prices of a pencil case in the year 2005 and 2007 were RM8.40 and RM9.20 respectively. Calculate the price index of the pencil case for the year 2007 based on the year 2005. A) 91.30. B) 77.28. C) 70.33. D) 109.52. Show Answer Correct Answer: D) 109.52. 11. Laspeyres Index Number is 112 and Paasches Index Number is 175. Fishers Index Number is A) 200. B) 140. C) 175. D) 112. Show Answer Correct Answer: B) 140. 12. The index for 1985 to the base 1980 is 125 and for 1980 to the base 1985 is 80 .The given indices satisfy A) Circular test. B) Factor reversal test. C) Time reversal test. D) Marshall-Edgeworth test. Show Answer Correct Answer: C) Time reversal test. 13. Which of the following index number is based on Geometric Mean A) Paasches Index Number. B) Simple Index Number. C) Fishers Index Number. D) Bowleys Index Number. Show Answer Correct Answer: C) Fishers Index Number. 14. Cyclical variation can occur several times in a year. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 15. Laspeyre's Index based on ..... A) Base year quantities. B) Current year quantities. C) Both of them. D) On Average of Current and Base year. Show Answer Correct Answer: A) Base year quantities. 16. Which Index Number is an important indicator of the level of output in the economy? A) IAP. B) CPI. C) IIP. D) WPI. Show Answer Correct Answer: C) IIP. 17. Least squares method of finding trend is very simple and does not involve any calculations. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 18. Index numbers constructed with changing base period with the base for each year being immediately preceding the year A) Fixed Base Index Numbers. B) Base Shifting. C) Chain Base Index Numbers. D) Splicing. Show Answer Correct Answer: C) Chain Base Index Numbers. 19. If the regression line is Y on X, then the variable X is known as. A) Independent variable. B) Explanatory variable. C) Regressor. D) All the above. Show Answer Correct Answer: A) Independent variable. 20. The price of a plate of chicken rice at a certain stall increased from RM2.80 in the year 2000 to RM3.50 in the year 2005. Calculate the price index of a plate of chicken rice for thar stall in the year 2005 based on the year 2000. A) 135. B) 125. C) 142. D) 130. Show Answer Correct Answer: B) 125. 21. 15 % price increase ''Which number index represents the statement above A) 15. B) 115. C) 85. D) 185. Show Answer Correct Answer: B) 115. 22. The condition for the time reversal test to hold good with usual notation is A) P$_{01}$ / P$_{10}$ = 1. B) P$_{01}$ X P$_{10}$ = 1. C) P$_{01}$ + P$_{10}$ = 1. D) P$_{01}$-P$_{10}$=1. Show Answer Correct Answer: B) P$_{01}$ X P$_{10}$ = 1. 23. Index numbers are specialised A) Percentages. B) Averages. C) All the above. D) None of the above. Show Answer Correct Answer: B) Averages. 24. The production quantity index for three item X, Y and Z in the year 2020 based on the year 2010 is 110, 120 and 80 respectively with the ratio of 3:2:5 . Calculate the composite index for all three items in the year 2020 based on the year 2010. A) 113. B) 197. C) 103. D) 97. Show Answer Correct Answer: D) 97. 25. The average monthly telephone bill for a school in the year 2005 was RM 70.00. The index number of the telephone bill is 125 in the year 2012, using of the year 2005 as the base year. Calculate the average monthly telephone bill for the school in the year 2012. A) RM 83.50. B) RM 89.60. C) RM 87.50. D) RM 80.00. Show Answer Correct Answer: C) RM 87.50. 26. *Of the two periods, the period with which the comparison is to be made is known as the ..... A) Base period. B) Current period. C) All the above. D) None of the above. Show Answer Correct Answer: A) Base period. 27. The geometric mean of Laspeyre's and paasche's price indices is also known as A) Dorbish-Bowley's price index. B) Kelly's price index. C) Fisher's price index. D) Marshall-Edgeworth test. Show Answer Correct Answer: C) Fisher's price index. 28. The index that satisfies factor reversal test is A) Fisher's ideal index. B) Paasche's index. C) Walsh price index. D) Laspeyre's index. Show Answer Correct Answer: A) Fisher's ideal index. 29. A linear regression (LR) analysis produces the equation Y = 3 + 0.4X. This indicates that: A) When Y = 0, X = 3. B) When X = 0, Y = 3. C) When X = 3, Y = 0.4. D) When Y = 0.4, X = 3. Show Answer Correct Answer: B) When X = 0, Y = 3. ← PreviousRelated QuizzesCommerce QuizzesClass 11 QuizzesClass 11 Economics (Statistics For Economics) Chapter 8 Index Numbers Quiz 1Class 11 Economics (Statistics For Economics) Chapter 1 Introduction QuizClass 11 Economics (Statistics For Economics) Chapter 2 Collection Of Data QuizClass 11 Economics (Statistics For Economics) Chapter 3 Organisation Of Data QuizClass 11 Economics (Statistics For Economics) Chapter 4 Presentation Of Data QuizClass 11 Economics (Statistics For Economics) Chapter 5 Measures Of Central Tendency QuizClass 11 Economics (Statistics For Economics) Chapter 6 Measures Of Dispersion QuizClass 11 Economics (Statistics For Economics) Chapter 7 Correlation Quiz 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books