Chapter: Unit 4

A series of numerical figures which show the relative position is called

A. index no.
B. relative no.
C. absolute no.
D. none
Answer» A. index no.

Index no. for the base period is always taken as

A. 200
B. 50
C. 1
D. 100
Answer» D. 100

play a very important part in the construction of index nos

A. weights
B. classes
C. estimations
D. none
Answer» A. weights

___is particularly suitable for the construction of index nos.

A. H.M
B. A.M.
C. G.M
D. None
Answer» C. G.M

Index nos. show changes rather than absolute amounts of change.

A. Relative
B. Percentage
C. Both
D. None
Answer» B. Percentage

The makes index nos. time-reversible

A. A.M
B. G.M.
C. H.M
D. None
Answer» B. G.M.

Index no. is equal to

A. sum of price relatives
B. average of the price relatives
C. product of price relative
D. none
Answer» B. average of the price relatives

The of group indices given the General Index

A. H.M.
B. G.M.
C. A.M
D. none
Answer» C. A.M

Circular Test is one of the tests of

A. index no’s
B. hypothesis
C. both
D. none
Answer» A. index no’s

____ is an extension of time reversal test

A. Factor Reversal test
B. Circular test
C. Both
D. None
Answer» B. Circular test

Weighted G.M. of relative formula satisfy test

A. Time Reversal Test
B. Circular test
C. Factor Reversal Test
D. None
Answer» A. Time Reversal Test

Factor Reversal test is satisfied by:

A. Fisher’s Ideal Index
B. Laspeyres Index
C. Paasches Index
D. None
Answer» A. Fisher’s Ideal Index

Laspeyre's formula does not obey:

A. Factor Reversal Test
B. Time Reversal Test
C. Circular Test
D. None
Answer» B. Time Reversal Test

A ratio or an average of ratios expressed as a percentage is called

A. a relative no
B. an absolute no.
C. an index no.
D. none
Answer» C. an index no.

The value at the base time period serves as the standard point of comparison

A. False
B. True
C. Both
D. None
Answer» B. True

An index time series is a list of nos. for two or more periods of time

A. Index
B. Absolute
C. Relative
D. None
Answer» A. Index

Index nos. are often constructed from the

A. Frequency
B. Class
C. Sample
D. None
Answer» C. Sample

__________ is a point of reference in comparing various data describing individual behavior.

A. Sample
B. Base period
C. Estimation
D. None
Answer» B. Base period

The ratio of price of single commodity in a given period to its price in another period is called the

A. base period
B. price ratio
C. relative price
D. none
Answer» A. base period

P01 is the index for time

A. 1 on 0
B. 0 on 1
C. 1 on 1
D. 0 on 0
Answer» A. 1 on 0

When the price of a divided by the price of the preceding year, we, get:

A. Value index
B. Link relative
C. Simple relative
D. None of them
Answer» B. Link relative

The most appropriate average in averaging the price relatives is:

A. Median
B. Harmonic mean
C. Arithmetic mean
D. Geometric mean
Answer» D. Geometric mean

In constructing index number geometric mean relatives are:

A. Non-reversible
B. Reciprocal
C. Reversible
D. None of them
Answer» C. Reversible

The general purchasing power of the currency of a country is determined by:

A. Retail price index
B. Volume index
C. Composite index
D. Whole-sale price index
Answer» D. Whole-sale price index

What type of index number can help the government to formulate its price policies and to take appropriate economic measures to control prices:

A. Whole sale price index
B. Consumer's price
C. Quantity
D. None of them
Answer» B. Consumer's price

Which of the following is a component of timer series;

A. Secular trend
B. Correlation
C. Regression
D. Consumer price index
Answer» A. Secular trend

Which of the following is a method of measuring trend:

A. Freehand curve
B. Bar graph
C. Histogram
D. System Analysis
Answer» A. Freehand curve

Cyclical variations are caused by

A. Trade business cycles
B. Elections
C. Changes in foreign exchange
D. Changes in interest rates
Answer» A. Trade business cycles

Periodic movements with duration longer than a year are called

A. Seasonal movements
B. Cyclic movements
C. Social movements
D. Cultural movements
Answer» B. Cyclic movements

Seasonal variations are short term variations with period

A. less than 6 months
B. less than 5 years
C. less than 1 year
D. more than 10 years
Answer» C. less than 1 year

The component of time series useful for long term forecasting is

A. Secular trend
B. Seasonal variation
C. Cyclical variation
D. Irregular variation
Answer» A. Secular trend

If the growth rate is constant, the trend is –

A. linear
B. non linear
C. curvy
D. wavy
Answer» A. linear

The trend line Y=a+bX obtained by the least Squares method is known as the line of

A. best fit
B. fit best
C. best neutral
D. nonlinear fit
Answer» A. best fit
Question and answers in Unit 4, Unit 4 multiple choice questions and answers, Unit 4 Important MCQs, Solved MCQs for Unit 4, Unit 4 MCQs with answers PDF download