ACC 213 CBT PRACTICE

1. The Dorbish-Bowley Price Index is calculated as:

2. Index numbers for deflation are used to:

3. The purchasing power of money is measured using:

4. The primary objective of constructing index numbers is to:

5. Quantity indices are typically used for:

6. Price index numbers are classified into:

7. A reliable base period should ideally:

8. Weighted aggregate methods are preferred because they:

9. Value index numbers consider

10. Fisher’s index satisfies the factor reversal test by ensuring that:

11. The main limitation of the Simple Aggregate Method is:

12. The purpose of using index numbers in policy formulation is to:

13. The Laspeyre’s Price Index formula includes:

14. The base period index value is typically set to:

15. Retail price indices are designed to

16. A properly constructed index number should:

17. The selection of commodities for an index number should consider:

18. The value of the base period in index numbers is generally taken as:

19. Value index numbers are calculated by:

20. Problems in the construction of index numbers include:

21. Index numbers are used to measure:

22. The chain-base method is different from the fixed-base method because it:

23. Paasche’s Price Index uses weights based on:

24. The term “weight” in index numbers refers to:

25. The Dorbish-Bowley Index is sometimes referred to as:

26. Price index numbers are classified into:

27. Selection of a base period for index numbers should avoid:

28. Laspeyre’s Price Index uses:

29. The formula for the simple aggregate method does not account for:

30. Laspeyre’s and Paasche’s indices differ because:

31. The formula for Fisher’s Price Index includes:

32. Quantity index numbers measure

33. Fisher’s Price Index is considered ideal because it satisfies:

34. The time reversal test ensures that

35. The index number of profit or sales is an example of:

36. The geometric mean is used in Fisher’s Price Index to:

37. Irving Fisher introduced:

38. The primary use of index numbers is to:

39. Simple aggregate method is calculated as:

40. Weighted aggregate methods assign weights to commodities based on: