alleryStart learning →An index number compares a value with a base value that is usually set at what number?
- 1000
- 100
- 0
- 10
Show answer and solution
Correct answer: B. 100
The base period value is normally fixed at 100 so that other periods read as percentages of it.
CA Foundation Index Numbers — practice questions
Explore 63 free Index Numbers questions in CA Foundation Quantitative Aptitude. Open each question or exercise to read its content, reference answers and available explanation.
Practise Index Numbers with Quill →Index Numbers questions and exercises with answers
Showing questions 1–30 of 63.
An index number compares a value with a base value that is usually set at what number?Read the answer and worked solution →A commodity's price doubles from 1960 to 1970. What is its 1970 index number with 1960 as base?Read the answer and worked solution →An index number is found as 100 times the ratio of which two values?Read the answer and worked solution →Which index measures retail price changes for consumer goods and services?Read the answer and worked solution →The producer price index tracks which kind of price movement?Read the answer and worked solution →The employment cost index gauges changes in which of these?Read the answer and worked solution →The GDP deflator reflects price changes across which set of items?Read the answer and worked solution →Which writer's 1675 book A Discourse of Coin and Coinage is the earliest reported price level research?Read the answer and worked solution →Which Englishman developed perhaps the first true price index in 1707?Read the answer and worked solution →The Laspeyres price index uses which quantities as weights?Read the answer and worked solution →Which quantities weight the prices in a Paasche index?Read the answer and worked solution →In which year did Etienne Laspeyres develop his price index?Read the answer and worked solution →In which year did Hermann Paasche introduce his price index?Read the answer and worked solution →The Fisher index is what kind of average of the Laspeyres and Paasche indices?Read the answer and worked solution →The Carli index is which type of average?Read the answer and worked solution →The Dutot index is computed as which of these?Read the answer and worked solution →The Jevons index is the unweighted form of which mean of price relatives?Read the answer and worked solution →Nicolas Dutot proposed his price index in which year?Read the answer and worked solution →Why was the Jevons index inadequate for an early FT index?Read the answer and worked solution →Which unweighted index overweights large price increases and so has an upward bias?Read the answer and worked solution →A Laspeyres index tends to do what to measured inflation?Read the answer and worked solution →What bias does the Paasche measure show for inflation?Read the answer and worked solution →What does Laspeyres ignore, thus overstating inflation?Read the answer and worked solution →Why is the Laspeyres index simpler to compute than the Paasche index?Read the answer and worked solution →In a chained price index, how often is the base updated?Read the answer and worked solution →An unchained price index compares every period with what?Read the answer and worked solution →Period-to-period changes in a chained index are combined by doing what to them?Read the answer and worked solution →What drawback can chained indices show when errors accumulate?Read the answer and worked solution →A consumer price index is the weighted average price of what?Read the answer and worked solution →The annual percentage change in the CPI is used as a measure of what?Read the answer and worked solution →
Worked practice questions
A commodity's price doubles from 1960 to 1970. What is its 1970 index number with 1960 as base?
- 100
- 200
- 50
- 150
Show answer and solution
Correct answer: B. 200
Doubling means the current price is twice the base price, so 2 x 100 gives 200.
An index number is found as 100 times the ratio of which two values?
- Current value to the total
- Base value to current value
- Current value to the base value
- Difference to the base value
Show answer and solution
Correct answer: C. Current value to the base value
The index expresses the current value relative to the base value, scaled by 100.
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