Index Numbers

Question 1

Index numbers are expressed in_________

Answer 1

Terms of percentage

Question 2

Inflation affects the__________ of common people

Answer 2

Standard of living

Question 3

Using current year quantities as weights is known as_______________

Answer 3

Paasche’s price index

Question 4

P¹ and P⁰ indicate the price of the commodity in the current and ________ period respectively

Answer 4

Base

Question 5

CPI

Answer 5

Consumer price index

Question 6

WPI

Answer 6

Wholesale price index

Question 7

IPI

Answer 7

Industrial production index

Question 8

API

Answer 8

Agriculture price index

Question 9

PPI

Answer 9

Producer price index

Question 10

What is index number?

Answer 10

It is a specialized average designed to measure the changes in a variable with respect to time

Question 11

What is price relative

Answer 11

Price relative is the price in the current year expressed as a percentage of prices in the base year

Question 12

What is inflation?

Answer 12

Inflation refers to rise the prices of essential commodities

Question 13

Write the formula to calculate index of industrial production

Answer 13

IIp⁰¹=Sigma q1 x W
———————– x 100
Sigma w

Question 14

What is sensex

Answer 14

Sensex is a free float market capitalisation, weighted stock market index of 30 we’ll established and financially sound companies listed on Bombay stock exchange