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Class 11 Commerce Index Numbers — practice questions

Explore 12 free Index Numbers questions in Class 11 Commerce Economics. Open each question or exercise to read its content, reference answers and available explanation.

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Index Numbers questions and exercises with answers

Showing questions 1–12 of 12.

An index number is a statistical device used to measure changes in a variable or a group of variables over:Read the answer and worked solution →The year that is taken as the standard of reference for constructing an index number is called the:Read the answer and worked solution →The year for which the price changes are being measured relative to the base year is the:Read the answer and worked solution →The value of the index number for the base year is always taken to be:Read the answer and worked solution →An index number that measures the general change in the prices of a basket of goods is a:Read the answer and worked solution →The Consumer Price Index is also commonly known as the:Read the answer and worked solution →A general and sustained rise in the price level, often tracked using price index numbers, is called:Read the answer and worked solution →If the price index for the current year is 125 (base year = 100), prices have on average risen by:Read the answer and worked solution →The index number that measures changes in the prices of goods at the wholesale level is the:Read the answer and worked solution →As the cost of living rises, the purchasing power of money tends to:Read the answer and worked solution →Index numbers are often described as economic ___ because they signal the direction of economic change:Read the answer and worked solution →The Index of Industrial Production (IIP) measures changes in the level of:Read the answer and worked solution →

Worked practice questions

An index number is a statistical device used to measure changes in a variable or a group of variables over:

  1. a fixed price
  2. time
  3. one transaction
  4. a single day only
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Correct answer: B. time

An index number measures relative change in a variable over time.

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The year that is taken as the standard of reference for constructing an index number is called the:

  1. financial year
  2. base year
  3. current year
  4. leap year
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Correct answer: B. base year

The base year is the standard reference period.

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The year for which the price changes are being measured relative to the base year is the:

  1. current year
  2. base year
  3. reference century
  4. previous decade
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Correct answer: A. current year

The current year is the period whose change is measured against the base.

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