Mathematical Economics-Online Practice Exam 5

Test

# Question

1. Which of the following index numbers suffer from upward bias?

Bowley’s index number

Fisher’s index number

Laspayere’s index number

Paasche’s index number

# Question

2. Which of the following is NOT correctly matched ?

 Laspeyer
 Fisher
 Marshall
 Bowley

# Question

3. Which of the following index number suffer from downward bias ?

Bowley’s index number

Fisher’s index number

Laspayere’s index number

Paasche’s index number

# Question

4. Time reversal test requires that

P01 × P10 = 1

P01 × P12 × P20 = 1

# Question

5. Factor reversal test implies that

P01 × P10 = 1

P01 × P12 × P20 = 1

# Question

6. Which of the following index numbers does not satisfy the unit test ?

Simple aggregative index number

Laspeyre’s index number

Bowley’s index number

Fisher’s index number

# Question

7. The figure of a particular year expressed as a percentage of the preceeding year’s figure is called

price relative

quantity relative

chain relative

# Question

8. Over period of time, an existing series of index numbers tends to becomes obsolete and it fails to include new commodities gaining importance at a later date or to exclude the commodities losing significance in course of time. These problems can be overcome by-

Fixed based index

Chain index numbers

Fisher’s ideal index

Both Fisher’s ideal index and fixed base index

# Question

9. The arithmetic mean of marks scored by girls in the class is 70 while that of the boys is 60. If the arithmetic mean of marks scored by students is 63, then are percentage of girls in the class-

is less than that of the boys

is equal to that of the boys

is more than that of the boys

cannot be computed because of insufficient data

# Question

10. For which measure of central tendency the sum of deviations (taking sings into account) of the items from the measure of central tendency is zero ?

The coefficient of determination is negative if the coefficient of correlation is negative

The coefficient of determination is negative if the coefficient of correlation is positive

The coefficient of determination is negative if the coefficient of correlation is negative

The coefficient of determination is positive always

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