CA Foundation P3 · Chapter 18 · Question 1 of 9
The 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 index is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 120
Explanation
Simple aggregative index = (Σp₁/Σp₀) x 100 = (300/250) x 100 = 120. Inverting the ratio gives 83.33, and the difference 300 − 250 = 50 is not an index.
More Index Numbers MCQs
- 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):
- Q5Which index number satisfies both the time reversal test and the factor reversal test?
- Q6The link relatives of prices for three successive years (each on the previous year as 100) are 110, 105 and 120. Taking the year before…
- Q7On 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: