McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Economics (CBCS) .
Chapters
| 1. |
Fisher's index number is the |
| A. | Arithmetic mean of Paasche's index number and Laspeyres' index number |
| B. | Harmonic mean of Paasche's index number and Laspeyres' index number |
| C. | Average mean of Paasche’s index number and Laspeyres’ index number |
| D. | Geometric mean of Paasche's index number and Laspeyres' index number |
| Answer» D. Geometric mean of Paasche's index number and Laspeyres' index number | |
| 2. |
Which of the following is not a measurement of trend? |
| A. | Graphic method |
| B. | Method of moving averages |
| C. | Method of composite straight lines |
| D. | Method of semi-averages |
| Answer» C. Method of composite straight lines | |
| 3. |
Which of the following is not a component of time series? |
| A. | Regular variations |
| B. | Seasonal variations |
| C. | Irregular variations |
| D. | Cyclical variations |
| Answer» A. Regular variations | |
| 4. |
Which of the following is an ideal index number? |
| A. | Paasche's index number |
| B. | Fisher's index number |
| C. | Laspeyres' index number |
| D. | Marshall-Edgeworth index number |
| Answer» B. Fisher's index number | |
| 5. |
Laspeyres' index number may be said to give |
| A. | Upper limit to the price change |
| B. | Lower limit to the price change |
| C. | Demand limit to the price change |
| D. | Supply limit to the price change |
| Answer» A. Upper limit to the price change | |
| 6. |
In the measurement of trend, semi-average method is desired to be applied only when the trend is |
| A. | Convex and semi-convex |
| B. | Non-linear |
| C. | Quadratic and concave |
| D. | Linear or approximately linear |
| Answer» D. Linear or approximately linear | |
| 7. |
Laspeyres' index formula uses the weight of the |
| A. | Previous year |
| B. | Current year |
| C. | Base year |
| D. | Next year |
| Answer» C. Base year | |
| 8. |
P0 indicates |
| A. | Price of the current year |
| B. | Price of the base year |
| C. | Price of the last year |
| D. | Price of previous year |
| Answer» B. Price of the base year | |
| 9. |
Base period for an index number should be a |
| A. | Normal period |
| B. | Year only |
| C. | Period at distant past |
| D. | Next year |
| Answer» A. Normal period | |
| 10. |
Index numbers are expressed in: |
| A. | Ratios |
| B. | Squares |
| C. | Percentages |
| D. | Margin |
| Answer» C. Percentages | |
| 11. |
Index for base period is always taken as: |
| A. | One |
| B. | 100 |
| C. | Zero |
| D. | 1000 |
| Answer» B. 100 | |
| 12. |
When index number is calculated for several variables, it is called: |
| A. | Composite index |
| B. | Whole sale price index |
| C. | Simple index |
| D. | Price index |
| Answer» A. Composite index | |
| 13. |
Purchasing power of money can be assessed through: |
| A. | Simple index |
| B. | Fisher’s index |
| C. | Composite index |
| D. | Consumer price index |
| Answer» D. Consumer price index | |
| 14. |
The most appropriate average in averaging the price relatives is: |
| A. | Harmonic mean |
| B. | Arithmetic mean |
| C. | Geometric mean |
| D. | Median |
| Answer» C. Geometric mean | |
| 15. |
What type of index number can help the government to formulate its price policies and to take appropriate economic measures to control prices? |
| A. | Wholesale Price Index |
| B. | Consumer's Price Index |
| C. | Volume Index Number |
| D. | Composite index |
| Answer» B. Consumer's Price Index | |
| 16. |
Fisher's ideal index number is the geometric mean of the: |
| A. | Laspeyre's and Marshall Edgeworth indices |
| B. | Laspeyre's and Paasche's indices |
| C. | Paasche's and Marshal Edgeworth indices |
| D. | Square root of Laspeyre’s |
| Answer» B. Laspeyre's and Paasche's indices | |
| 17. |
An orderly set of data arranged in accordance with their time of occurrence is called: |
| A. | Arithmetic series |
| B. | Geometric series |
| C. | Time series |
| D. | Random series |
| Answer» C. Time series | |
| 18. |
The graph of time series is called: |
| A. | Polygon |
| B. | Frequency curve |
| C. | Ogive |
| D. | Histogram |
| Answer» D. Histogram | |
| 19. |
The secular trend is measured by the method of semi-averages when: |
| A. | Time series based on yearly values |
| B. | Trend is linear |
| C. | Time series consists of even number of values |
| D. | Trend is non-linear |
| Answer» B. Trend is linear | |
| 20. |
Increase in the number of patients in the hospital due to heat stroke is: |
| A. | Secular trend |
| B. | Irregular variation |
| C. | Seasonal variation |
| D. | Regular variation |
| Answer» C. Seasonal variation | |
| 21. |
The method of moving average is used to find the: |
| A. | Secular trend |
| B. | Seasonal variation |
| C. | Cyclical variation |
| D. | Irregular variation |
| Answer» A. Secular trend | |
| 22. |
Moving average method is used for measurement of trend when: |
| A. | Trend is linear |
| B. | Trend is non linear |
| C. | Trend is curvilinear |
| D. | Trend is irregular |
| Answer» A. Trend is linear | |
| 23. |
The long term trend of a time series graph appears to be: |
| A. | Straight-line |
| B. | Upward |
| C. | Parabolic curve or third degree curve |
| D. | Downward |
| Answer» C. Parabolic curve or third degree curve | |
| 24. |
Which of the following is an example of seasonal variations? |
| A. | Death rate decreased due to advance in science |
| B. | Birth rate increased due to invention of new medicine |
| C. | Sudden increase in death rates caused by wars |
| D. | The sale of air condition increases during summer |
| Answer» D. The sale of air condition increases during summer | |
| 25. |
The best fitting trend is one in which the sum of squares of residuals is: |
| A. | Negative |
| B. | Least |
| C. | Zero |
| D. | high |
| Answer» B. Least | |
| 26. |
The rise and fall of a time series over periods longer than one year is called: |
| A. | Seasonal variation |
| B. | Irregular variation |
| C. | Cyclical variation |
| D. | Moving average |
| Answer» C. Cyclical variation | |
| 27. |
The difference between the actual value of the time series and the forecasted value is called: |
| A. | Residual |
| B. | Sum of variation |
| C. | Sum of squares of residual |
| D. | Total of square variation |
| Answer» A. Residual | |
| 28. |
The second degree parabola is fitted to the time series when the variations are: |
| A. | Linear |
| B. | Nonlinear |
| C. | Random |
| D. | Semi-linear |
| Answer» A. Linear | |
| 29. |
The production of goods is decreasing, this stage is called: |
| A. | Recovery |
| B. | Boom |
| C. | Prosperity |
| D. | Recession |
| Answer» D. Recession | |
| 30. |
A business cycle has: |
| A. | Two stages |
| B. | Three stages |
| C. | Four stages |
| Answer» C. Four stages | |
| 31. |
The four components of a time series are not necessarily |
| A. | Mutually dependent |
| B. | Mutually independent |
| C. | Equilibrium |
| D. | Not equilibrium |
| Answer» B. Mutually independent | |
| 32. |
If the period of moving average is equal to the period of the cycle, the smoothing is perfect and we have |
| A. | A straight line trend |
| B. | A reverse trend |
| C. | A circle line trend |
| D. | A curvature line trend |
| Answer» A. A straight line trend | |
| 33. |
A price relative is |
| A. | An imaginary number |
| B. | A complex number |
| C. | A pure number |
| D. | None of these |
| Answer» C. A pure number | |
| 34. |
The product of the index number by another index number based on the same data with price and quantity interchanged should be equal to the ratio of aggregate value in the current to the aggregate value in the base year is |
| A. | Time reversal test |
| B. | Circular test |
| C. | Factor Reversal Test |
| D. | Test of proportionality |
| Answer» C. Factor Reversal Test | |
| 35. |
Index numbers are useful only when data can be expressed in |
| A. | Qualitative terms |
| B. | Quantitative terms |
| C. | Percentage |
| D. | Descending order |
| Answer» B. Quantitative terms | |
| 36. |
Most of the time series relating to economic and business phenomena conform to the |
| A. | Additive model |
| B. | Mixed model |
| C. | Percentage model |
| D. | Multiplicative model |
| Answer» D. Multiplicative model | |
| 37. |
In a multiplicative model the seasonal effects are expressed as |
| A. | Percentage or Ratio |
| B. | Percentage or Square root |
| C. | Square root or Ratio |
| D. | Ratio or Variation |
| Answer» A. Percentage or Ratio | |
| 38. |
Which show the changes in the general price level of the country? |
| A. | Retail price index numbers |
| B. | Wholesale price index numbers |
| C. | Agricultural price index |
| D. | Industrial price index |
| Answer» B. Wholesale price index numbers | |
| 39. |
The cost of living index number is essentially a |
| A. | Simple index number |
| B. | Weighted index number |
| C. | Cross index number |
| D. | Retail price index number |
| Answer» D. Retail price index number | |
| 40. |
Time Reversal Test was developed by |
| A. | J.M Keynes |
| B. | Laspeyre |
| C. | Irving Fisher |
| D. | Paasche |
| Answer» C. Irving Fisher | |
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