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CBT TEST

ACC 213 CBT PRACTICE

Aruwaji Philip

January 22, 2025

150

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

I wish you success

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ACC 213

1 / 40

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

A. Simple aggregates of quantiti

B. Weighted averages of prices in the base year

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

D. Only base year quantities

2 / 40

2. Retail price indices are designed to

A. Evaluate industrial production

B. Reflect consumer price variations

C. Evaluate industrial production

D. Monitor export trends

3 / 40

3. Value index numbers consider

A. Retail prices exclusively

B. Both price and quantity changes

C. Wholesale prices exclusively

D. Average price changes only

4 / 40

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

A. Arithmetic and harmonic mean tests

B. Consistency and reversal tests

C. Exponential growth assumptions

D. Statistical bias tests

5 / 40

5. The primary use of index numbers is to:

A. Evaluate corporate performances

B. Study microeconomic trends

C. Track changes in specific phenomena

D. Predict future stock prices

6 / 40

6. Price index numbers are classified into:

A. Simple and compound

B. Wholesale and retail price indices

C. Quantity and value indices

D. Weighted and unweighted

7 / 40

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

A. Price index numbers

B. Weighted index numbers

C. Quantity index numbers

D. Value index numbers

8 / 40

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

A. 50

B. 100

C. 200

D. 0

9 / 40

9. Laspeyre’s Price Index uses:

A. Base year quantities as weights

B. Aggregate averages

C. Geometric mean of prices

D. Current year weights

10 / 40

10. Quantity indices are typically used for:

A. Evaluating changes in output or consumption

B. Studying price trends

C. Analyzing income distribution

D. Calculating inflation rates

11 / 40

11. Irving Fisher introduced:

A. Paasche’s Price Index

B. The ideal index formula

C. Simple aggregate methods

D. Laspeyre’s Price Index

12 / 40

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

A. Arbitrary values

B. Random sampling

C. Relative importance in the group

D. Their cost price

13 / 40

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

A. It ignores differences in units of measurement

B. It requires excessive data

C. It uses fixed-base periods

D. It cannot handle price fluctuations

14 / 40

14. A properly constructed index number should:

A. Focus solely on price variations

B. Be based on accurate and reliable data

C. Ignore minor commodities

D. Be biased towards the highest values

15 / 40

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

A. Eliminate statistical bias

B. Simplify data aggregation

C. Combine Laspeyre’s and Paasche’s indices

D. Minimize errors in data collection

16 / 40

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

A. 0

B. 50

C. 1

D. 100

17 / 40

17. The purchasing power of money is measured using:

A. Weighted aggregates

B. Price index numbers

C. Statistical averages

D. Quantity index numbers

18 / 40

18. Index numbers are used to measure:

A. Relative changes in phenomena over time

B. Statistical errors in surveys

C. Seasonal variations in production

D. Changes in market structure

19 / 40

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

A. One calculates wholesale indices, the other retail indices

B. One ignores quantity changes

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

D. Both use different arithmetic methods

20 / 40

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

A. Forecast population growth

B. Provide insights into economic trends

C. Simplify data interpretation

D. Minimize inflation rates

21 / 40

21. Problems in the construction of index numbers include:

A. Challenges in choosing appropriate averages

B. Lack of reliable data

C. Difficulty in selecting a base period

D. All the options

22 / 40

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

A. The average of simple aggregates

B. The L-P formula

C. The geometric index

D. The ideal price index

23 / 40

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

A. Time periods are reversed without affecting the index

B. Averages are statistically unbiased

C. Data remains reliable across multiple calculations

D. Price and quantity indices yield consistent results

24 / 40

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

A. The weighted average of price aggregates

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

C. The harmonic mean of all index values

D. The geometric mean of base and current year prices

25 / 40

25. Simple aggregate method is calculated as:

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

B. The ratio of total quantities in two periods

C. The difference between wholesale and retail prices

D. A weighted average of prices in the current year

26 / 40

26. Weighted aggregate methods are preferred because they:

A. Simplify complex calculations

B. Avoid issues with quantity indices

C. Ignore minor price variations

D. Reflect the relative importance of commodities

27 / 40

27. A reliable base period should ideally:

A. Exclude periods of high inflation

B. Be free from economic disruptions

C. Have minimal data points

D. Be closer to the current year

28 / 40

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

A. Study individual consumer preferences

B. Track retail pricing trends

C. Evaluate industrial output

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

29 / 40

29. 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

30 / 40

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

A. The unit of measurement for commodities

B. Price variations

C. Statistical averages

D. Importance assigned to each commodity

31 / 40

31. Price index numbers are classified into:

A. Track changes in specific phenomena

B. Evaluate corporate performances

C. Evaluate corporate performances

D. Predict future stock prices

32 / 40

32. Value index numbers are calculated by:

A. Subtracting fixed costs from variable costs

B. Dividing total revenue by total cost

C. Using weighted averages

D. Multiplying price by quantity

33 / 40

33. Index numbers for deflation are used to:

A. Analyze population growth

B. Measure inflationary pressures

C. Adjust nominal values to real terms

D. Compare income levels across regions

34 / 40

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

A. Political instability

B. Periods of economic depression

C. Natural disasters

D. All the options

35 / 40

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

A. Ignores quantity indices

B. Focuses only on prices

C. Uses weighted averages

D. Allows comparisons across changing base periods

36 / 40

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

A. Arithmetic means

B. Units of measurement

C. Weighted averages

D. Price variations

37 / 40

37. The time reversal test ensures that

A. Trends are reversible under specific conditions

B. Data reliability is maximized

C. Averages are unaffected by price changes

D. The index remains consistent over different periods

38 / 40

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

A. Enhance tax calculations

B. Simplify statistical methods

C. Promote industrial development

D. Analyze relative changes over time

39 / 40

39. The Laspeyre’s Price Index formula includes:

A. Current year quantities as weights

B. The mean of price and quantity

C. The median of prices over time

D. Base year quantities as weights

40 / 40

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

A. Average prices

B. Weighted aggregates

C. Base year prices

D. Current year quantities

Your score is

The average score is 46%

ACC 213 CBT PRACTICE

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