Mathematical Economics-Online Practice Exam 2

Test

# Question

1. The formula for simple average of price relative is

# Question

2. Consumer price index number measures

changes in prices

changes in wholesale prices

changes in the retail prices

None of the above

# Question

3. If the price index increases by 20 per cent, the cost of Economics book, which at present is ₹ 350, will increase by

₹20

₹70

₹50

₹30

# Question

4. Index of industrial production is a

development index

cost of living index

price index

quantity index

# Question

5. Index numbers indicate

relative changes

absolute changes

Both absolute and relative

None of the above

# Question

6. Weighted aggregate index formula using base year quantities as base is called-

Lasperyre’s price index

Passche’s price index

Bowley’s price index

Fischer’s price index

# Question

7. Weighted aggregate index formula using the average of base year and current year’s quantities as base is called

Bowley’s price index

Fischer’s price index

Passche’s price index

Lasperyre’s price index

# Question

8. The geometric mean of Laspeyre’s and Paasche’s indices is-

Fisher’s ideal index

Bowley’s index

Marshall and Edgewoth’s index

None of the above

# Question

9. Weighted average of relatives, if base year value is taken as weight, gives-

Lasperyre’s index

Fisher’s ideal index

Passche’s price index

Bowley’s index

# Question

10. The error of estimate is measured by

the square root of the A. M. of the squared differences

the square root of the squared difference

the square of the squared differences

the arithmetic mean of the squared differences

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