CA Foundation P3 · Chapter 18 · Question 7 of 9
On an old base, the index numbers for years X and Y are 150 and 180. If the base is shifted to year X, the new index for year Y is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) 120
Explanation
Shifted index = (old index of Y / old index of X) x 100 = (180/150) x 100 = 120. Subtracting 50 from 180 gives 130, and inverting gives 83.33.
More Index Numbers MCQs
- Q9The price relatives of three items are 120, 150 and 110, with weights 5, 2 and 3 respectively. The weighted index of price relatives is:
- Q1The sum of base-year prices of a group of commodities is ₹250 and the sum of current-year prices is ₹300. The simple aggregative price…
- Q2Using the data below, Laspeyres' price index is (to two decimals): Item A: p₀ = 10, q₀ = 5, p₁ = 12, q₁ = 6 Item B: p₀ = 8, q₀ = 10, p₁ =…
- Q3Using the data below, Paasche's price index is (to two decimals): Item A: p₀ = 10, q₀ = 5, p₁ = 12, q₁ = 6 Item B: p₀ = 8, q₀ = 10, p₁ =…
- Q4Laspeyres' price index is 125 and Paasche's price index is 120. Fisher's ideal index is (to two decimals):