Take your time to read instructions before taking this test.

There are 40 questions which you are to answer in 15 minutes that gives you roughly 30 seconds per question.

If you can get at least 60%, you can be rest assured that you’ll ace ACC 213 exam

In a normal exam you will be asked between 40 – 60 questions but I only arranged 40 questions

Note

Do not be in a hurry to answer the questions

Do not waste time on a question you don’t know

Move as fast as possible and starting with questions that don’t have calculation first to save time

Always crosscheck

Don’t be in a hurry to submit, you are not in a competition

Don’t be scared. Getting an A is easy

Don’t be over confident, you can end up a D, E or F. Calm your blood, no be only you sabi book

Please do well to use our comment box incase there’s a message you want to pass to us

70 – 100 A

60 – 69 B

50 – 59 C

45 – 49 D

40 – 44 E

0 – 39 F

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ACC 213

1 / 40

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

A. Price variations

B. Weighted averages

C. Arithmetic means

D. Units of measurement

2 / 40

2. Simple aggregate method is calculated as:

A. The difference between wholesale and retail prices

B. A weighted average of prices in the current year

C. The ratio of price aggregates in the current and base year multiplied by 100

D. The ratio of total quantities in two periods

3 / 40

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

A. 0

B. 100

C. 50

D. 200

4 / 40

4. Price index numbers are classified into:

A. Wholesale and retail price indices

B. Weighted and unweighted

C. Simple and compound

D. Quantity and value indices

5 / 40

5. Irving Fisher introduced:

A. The ideal index formula

B. Paasche’s Price Index

C. Simple aggregate methods

D. Laspeyre’s Price Index

6 / 40

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

A. Periods of economic depression

B. Natural disasters

C. Political instability

D. All the options

7 / 40

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

A. Their availability across periods

B. Their price fluctuations

C. Their relevance to the study

D. All the options

8 / 40

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

A. Statistical bias tests

B. Consistency and reversal tests

C. Arithmetic and harmonic mean tests

D. Exponential growth assumptions

9 / 40

9. A properly constructed index number should:

A. Focus solely on price variations

B. Ignore minor commodities

C. Be based on accurate and reliable data

D. Be biased towards the highest values

10 / 40

10. Problems in the construction of index numbers include:

A. Lack of reliable data

B. Challenges in choosing appropriate averages

C. Difficulty in selecting a base period

D. All the options

11 / 40

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

A. 1

B. 0

C. 100

D. 50

12 / 40

12. Value index numbers consider

A. Average price changes only

B. Wholesale prices exclusively

C. Both price and quantity changes

D. Retail prices exclusively

13 / 40

13. Laspeyre’s Price Index uses:

A. Current year weights

B. Geometric mean of prices

C. Aggregate averages

D. Base year quantities as weights

14 / 40

14. Quantity indices are typically used for:

A. Calculating inflation rates

B. Evaluating changes in output or consumption

C. Analyzing income distribution

D. Studying price trends

15 / 40

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

A. One calculates wholesale indices, the other retail indices

B. Both use different arithmetic methods

C. One ignores quantity changes

D. One uses base year weights, the other uses current year weights

16 / 40

16. Index numbers are used to measure:

A. Seasonal variations in production

B. Relative changes in phenomena over time

C. Statistical errors in surveys

D. Changes in market structure

17 / 40

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

A. Forecast population growth

B. Simplify data interpretation

C. Provide insights into economic trends

D. Minimize inflation rates

18 / 40

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

A. It uses fixed-base periods

B. It requires excessive data

C. It cannot handle price fluctuations

D. It ignores differences in units of measurement

19 / 40

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

A. Minimize errors in data collection

B. Combine Laspeyre’s and Paasche’s indices

C. Simplify data aggregation

D. Eliminate statistical bias

20 / 40

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

A. Average prices

B. Base year prices

C. Current year quantities

D. Weighted aggregates

21 / 40

21. Retail price indices are designed to

A. Evaluate industrial production

B. Reflect consumer price variations

C. Monitor export trends

D. Evaluate industrial production

22 / 40

22. Value index numbers are calculated by:

A. Subtracting fixed costs from variable costs

B. Using weighted averages

C. Dividing total revenue by total cost

D. Multiplying price by quantity

23 / 40

23. The primary use of index numbers is to:

A. Predict future stock prices

B. Study microeconomic trends

C. Track changes in specific phenomena

D. Evaluate corporate performances

24 / 40

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

A. Random sampling

B. Arbitrary values

C. Their cost price

D. Relative importance in the group

25 / 40

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

A. The harmonic mean of all index values

B. The geometric mean of base and current year prices

C. The arithmetic mean of Laspeyre’s and Paasche’s Price Index

D. The weighted average of price aggregates

26 / 40

26. The purpose of the wholesale price index is to:

A. Reflect changes in the general price level of the economy

B. Track retail pricing trends

C. Evaluate industrial output

D. Study individual consumer preferences

27 / 40

27. The purchasing power of money is measured using:

A. Statistical averages

B. Price index numbers

C. Quantity index numbers

D. Weighted aggregates

28 / 40

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

A. Simplify statistical methods

B. Analyze relative changes over time

C. Enhance tax calculations

D. Promote industrial development

29 / 40

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

A. Only base year quantities

B. Weighted averages of prices in the base year

C. Simple aggregates of quantiti

D. The geometric mean of Laspeyre’s and Paasche’s indices

30 / 40

30. The time reversal test ensures that

A. Averages are unaffected by price changes

B. Data reliability is maximized

C. The index remains consistent over different periods

D. Trends are reversible under specific conditions

31 / 40

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

A. Price variations

B. The unit of measurement for commodities

C. Statistical averages

D. Importance assigned to each commodity

32 / 40

32. A reliable base period should ideally:

A. Exclude periods of high inflation

B. Have minimal data points

C. Be free from economic disruptions

D. Be closer to the current year

33 / 40

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

A. The average of simple aggregates

B. The L-P formula

C. The ideal price index

D. The geometric index

34 / 40

34. Price index numbers are classified into:

A. Evaluate corporate performances

B. Evaluate corporate performances

C. Track changes in specific phenomena

D. Predict future stock prices

35 / 40

35. The Laspeyre’s Price Index formula includes:

A. The median of prices over time

B. Current year quantities as weights

C. Base year quantities as weights

D. The mean of price and quantity

36 / 40

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

A. Time periods are reversed without affecting the index

B. Data remains reliable across multiple calculations

C. Averages are statistically unbiased

D. Price and quantity indices yield consistent results

37 / 40

37. Weighted aggregate methods are preferred because they:

A. Simplify complex calculations

B. Ignore minor price variations

C. Reflect the relative importance of commodities

D. Avoid issues with quantity indices

38 / 40

38. Index numbers for deflation are used to:

A. Analyze population growth

B. Measure inflationary pressures

C. Compare income levels across regions

D. Adjust nominal values to real terms

39 / 40

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

A. Ignores quantity indices

B. Uses weighted averages

C. Focuses only on prices

D. Allows comparisons across changing base periods

40 / 40

40. Quantity index numbers measure

A. Variations in production or consumption volumes

B. Financial market trends

C. Price changes over time

D. Changes in corporate profitability

Your score is

The average score is 46%

ACC 213 CBT PRACTICE

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