ACC 213 CBT PRACTICE

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

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

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

4. Retail price indices are designed to

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

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

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

8. Value index numbers consider

9. Index numbers for deflation are used to:

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

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

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

13. Problems in the construction of index numbers include:

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

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

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

17. Price index numbers are classified into:

18. Quantity index numbers measure

19. Value index numbers are calculated by:

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

21. The time reversal test ensures that

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

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

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

25. Simple aggregate method is calculated as:

26. The Laspeyre’s Price Index formula includes:

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

28. Weighted aggregate methods are preferred because they:

29. Laspeyre’s Price Index uses:

30. Price index numbers are classified into:

31. The primary use of index numbers is to:

32. A reliable base period should ideally:

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

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

35. Quantity indices are typically used for:

36. A properly constructed index number should:

37. The purchasing power of money is measured using:

38. Irving Fisher introduced:

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

40. Index numbers are used to measure: