MCQ for CA Foundation Maths Chapter 18 INDEX NUMBERS

Sample Multiple Choice Questions (MCQ's) for CA Foundation - Paper 3 - Business Mathematics and Logical Reasoning & Statistics - Chapter 18 INDEX NUMBERS - For Practice relevant for Dec 22 and May/June 23 Examinations

Q:1 Fisher's ideal index number is

  1. The Median of Laspeyre's and Paasche's index numbers
  2. The Arithmetic Mean of Laspeyre's and Paasche's index numbers
  3. The Geometric Mean of Laspeyre's and Paasche's index numbers
  4. None of these.

Answer: 3

Q:2 If the ratio between Laspeyre's index number and Paasche's Index number is 28: 27. Then the missing figure in the following table P is :

Commodity                         Base Year                       Current Year

                                   Price    Quantity        Price    Quantity

X                                L                        10         2          5

Y                                L                          5         P          2

  1. 7
  2. 4
  3. 3
  4. 9

Answer: 2

Q:3 Consumer Price index number for the year 1957 was 313 with 1940 as the base year. The Average Monthly wages in 1957 of the workers into factory be Rs 160/- their real wages is

  1. Rs 48.40
  2. Rs 51.12
  3. Rs 40.30
  4. None of these.

Answer: 2

Q:4 In 1980, the net monthly income of the employee was Rs 800/- p. m. The consumer price index number was 160 in 1980. It rises to 200 in 1984. If he has to be rightly compensated. The additional D. A. to be paid to the employee is

  1. Rs 175/-
  2. Rs 185/-
  3. Rs 200/-
  4. Rs 125.

Answer: 3

Q:5 The index number of prices at a place in 1998 is 355 with 1991 as base. This means

  1. There has been on the average a 255% increase in prices.
  2. There has been on the average a 355% increase in price.
  3. There has been on the average a 250% increase in price.
  4. None of these.

Answer: 1

Q:6 With regard to Laspeyre's and Paasche's price index numbers, it is maintained that "If the prices of all the goods change in the same ratio, the two indices will be equal for them the weighting system is irrelevant; or if the quantities of all the goods change in the same ratio, they will be equal, for them the two weighting systems are the same relatively". Then the above statements satisfy.

  1. Laspeyre's Price index ≠Paasche's Price Index.
  2. Laspeyre's Price Index = Paasche's Price Index
  3. Laspeyre's Price Index may be equal Paasche's Price Index.
  4. None of these.

Answer: 2

Q:7 The value index is equal to:

  1. The total sum of the values of a given year multiplied by the sum of the values of the base year.
  2. The total sum of the values of a given year Divided by the sum of the values of the base year
  3. The total sum of the values of a given year plus by the sum of the values of the base year.
  4. None of these.

Answer: 2

Q:8 From the following data

Group             A         B         C         D         E          F

Group Index  120      132      98        115      108      95

Weight            6          3          4          2          1          4

The general Index I is given by:

  1. 3
  2. 45
  3. 25
  4. 75

Answer: 1

Q:9 The circular Test is an extension of 

  1. The time reversal Test.
  2. The factor reversal Test.
  3. The unit Test.
  4. None of these.

Answer: 1

Q:10 During a certain period the cost of living index number goes up from 110 to 200 and the salary of a worker is also raised from Rs 330 to Rs 500. The worker does not get really gain.

Then the real wages decreased by:

  1. Rs 45.45
  2. Rs 43.25
  3. Rs 100
  4. None of these.

Answer: 3

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