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 Fisher’s Price Index includes:

A. Simple aggregates of quantiti

B. Only base year quantities

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

D. Weighted averages of prices in the base year

2 / 40

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

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

B. Evaluate industrial output

C. Track retail pricing trends

D. Study individual consumer preferences

3 / 40

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

A. Periods of economic depression

B. All the options

C. Natural disasters

D. Political instability

4 / 40

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

A. Data remains reliable across multiple calculations

B. Price and quantity indices yield consistent results

C. Time periods are reversed without affecting the index

D. Averages are statistically unbiased

5 / 40

5. 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

6 / 40

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

A. It cannot handle price fluctuations

B. It ignores differences in units of measurement

C. It uses fixed-base periods

D. It requires excessive data

7 / 40

7. Index numbers are used to measure:

A. Seasonal variations in production

B. Statistical errors in surveys

C. Changes in market structure

D. Relative changes in phenomena over time

8 / 40

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

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

B. The geometric mean of base and current year prices

C. The weighted average of price aggregates

D. The harmonic mean of all index values

9 / 40

9. Price index numbers are classified into:

A. Predict future stock prices

B. Evaluate corporate performances

C. Evaluate corporate performances

D. Track changes in specific phenomena

10 / 40

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

A. 100

B. 200

C. 50

D. 0

11 / 40

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

A. Both use different arithmetic methods

B. One ignores quantity changes

C. One calculates wholesale indices, the other retail indices

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

12 / 40

12. The Laspeyre’s Price Index formula includes:

A. The median of prices over time

B. Base year quantities as weights

C. Current year quantities as weights

D. The mean of price and quantity

13 / 40

13. The purchasing power of money is measured using:

A. Price index numbers

B. Weighted aggregates

C. Quantity index numbers

D. Statistical averages

14 / 40

14. Problems in the construction of index numbers include:

A. All the options

B. Challenges in choosing appropriate averages

C. Difficulty in selecting a base period

D. Lack of reliable data

15 / 40

15. Irving Fisher introduced:

A. Simple aggregate methods

B. Paasche’s Price Index

C. The ideal index formula

D. Laspeyre’s Price Index

16 / 40

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

A. Arbitrary values

B. Random sampling

C. Their cost price

D. Relative importance in the group

17 / 40

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

A. Average prices

B. Weighted aggregates

C. Current year quantities

D. Base year prices

18 / 40

18. Index numbers for deflation are used to:

A. Adjust nominal values to real terms

B. Measure inflationary pressures

C. Compare income levels across regions

D. Analyze population growth

19 / 40

19. A properly constructed index number should:

A. Be based on accurate and reliable data

B. Be biased towards the highest values

C. Focus solely on price variations

D. Ignore minor commodities

20 / 40

20. The primary use of index numbers is to:

A. Track changes in specific phenomena

B. Study microeconomic trends

C. Predict future stock prices

D. Evaluate corporate performances

21 / 40

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

A. Promote industrial development

B. Simplify statistical methods

C. Analyze relative changes over time

D. Enhance tax calculations

22 / 40

22. Value index numbers are calculated by:

A. Dividing total revenue by total cost

B. Multiplying price by quantity

C. Subtracting fixed costs from variable costs

D. Using weighted averages

23 / 40

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

A. Arithmetic means

B. Weighted averages

C. Price variations

D. Units of measurement

24 / 40

24. Quantity indices are typically used for:

A. Evaluating changes in output or consumption

B. Analyzing income distribution

C. Calculating inflation rates

D. Studying price trends

25 / 40

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

A. Arithmetic and harmonic mean tests

B. Exponential growth assumptions

C. Consistency and reversal tests

D. Statistical bias tests

26 / 40

26. Quantity index numbers measure

A. Variations in production or consumption volumes

B. Changes in corporate profitability

C. Financial market trends

D. Price changes over time

27 / 40

27. 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

28 / 40

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

A. Importance assigned to each commodity

B. The unit of measurement for commodities

C. Statistical averages

D. Price variations

29 / 40

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

A. 100

B. 1

C. 50

D. 0

30 / 40

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

A. Their price fluctuations

B. Their relevance to the study

C. All the options

D. Their availability across periods

31 / 40

31. Weighted aggregate methods are preferred because they:

A. Ignore minor price variations

B. Simplify complex calculations

C. Reflect the relative importance of commodities

D. Avoid issues with quantity indices

32 / 40

32. Price index numbers are classified into:

A. Wholesale and retail price indices

B. Simple and compound

C. Weighted and unweighted

D. Quantity and value indices

33 / 40

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

A. Quantity index numbers

B. Weighted index numbers

C. Price index numbers

D. Value index numbers

34 / 40

34. Retail price indices are designed to

A. Reflect consumer price variations

B. Evaluate industrial production

C. Monitor export trends

D. Evaluate industrial production

35 / 40

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

A. Ignores quantity indices

B. Allows comparisons across changing base periods

C. Focuses only on prices

D. Uses weighted averages

36 / 40

36. A reliable base period should ideally:

A. Be closer to the current year

B. Be free from economic disruptions

C. Have minimal data points

D. Exclude periods of high inflation

37 / 40

37. Laspeyre’s Price Index uses:

A. Geometric mean of prices

B. Aggregate averages

C. Current year weights

D. Base year quantities as weights

38 / 40

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

A. The geometric index

B. The ideal price index

C. The average of simple aggregates

D. The L-P formula

39 / 40

39. Simple aggregate method is calculated as:

A. The ratio of total quantities in two periods

B. The difference between wholesale and retail prices

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

D. A weighted average of prices in the current year

40 / 40

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

A. Simplify data interpretation

B. Forecast population growth

C. Provide insights into economic trends

D. Minimize inflation rates

Your score is

The average score is 46%

ACC 213 CBT PRACTICE

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