CIMA BA1 · Chapter 10 · Question 1 of 10
The price of a product was $2.40 in the base year and is $2.70 in the current year. What is the simple price index for the current year (base year = 100)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) 112.5
Explanation
Simple price index = current price / base price x 100 = 2.70 / 2.40 x 100 = 112.5. This shows a 12.5% increase in price since the base year.
More Index numbers MCQs
- Q3Price and quantity data for two items are: Item X: base price $4, base quantity 10, current price $5, current quantity 8 Item Y: base…
- Q4Using the same data: Item X: base price $4, base quantity 10, current price $5, current quantity 8 Item Y: base price $10, base quantity…
- Q5An index series has Year 1 = 100. The index stands at 125 in Year 4 and 150 in Year 7. If the series is rebased so that Year 4 = 100, what…
- Q6An employee's weekly wage was $400 in Year 1 and $460 in Year 3. A retail price index was 100 in Year 1 and 112 in Year 3. What is the…
- Q7The main reason for using a weighted index rather than a simple aggregate index is to: