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. Weighted aggregate methods assign weights to commodities based on:

A. Their cost price

B. Arbitrary values

C. Random sampling

D. Relative importance in the group

2 / 40

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

A. 50

B. 1

C. 100

D. 0

3 / 40

3. Retail price indices are designed to

A. Monitor export trends

B. Evaluate industrial production

C. Reflect consumer price variations

D. Evaluate industrial production

4 / 40

4. A properly constructed index number should:

A. Focus solely on price variations

B. Be biased towards the highest values

C. Be based on accurate and reliable data

D. Ignore minor commodities

5 / 40

5. 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

6 / 40

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

A. Study individual consumer preferences

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

C. Track retail pricing trends

D. Evaluate industrial output

7 / 40

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

A. Only base year quantities

B. Simple aggregates of quantiti

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

D. Weighted averages of prices in the base year

8 / 40

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

A. Natural disasters

B. All the options

C. Periods of economic depression

D. Political instability

9 / 40

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

A. Arithmetic means

B. Weighted averages

C. Units of measurement

D. Price variations

10 / 40

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

A. One ignores quantity changes

B. Both use different arithmetic methods

C. One calculates wholesale indices, the other retail indices

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

11 / 40

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

A. Analyze relative changes over time

B. Promote industrial development

C. Enhance tax calculations

D. Simplify statistical methods

12 / 40

12. Problems in the construction of index numbers include:

A. Lack of reliable data

B. All the options

C. Difficulty in selecting a base period

D. Challenges in choosing appropriate averages

13 / 40

13. Value index numbers are calculated by:

A. Subtracting fixed costs from variable costs

B. Multiplying price by quantity

C. Using weighted averages

D. Dividing total revenue by total cost

14 / 40

14. Value index numbers consider

A. Average price changes only

B. Wholesale prices exclusively

C. Both price and quantity changes

D. Retail prices exclusively

15 / 40

15. Laspeyre’s Price Index uses:

A. Base year quantities as weights

B. Geometric mean of prices

C. Current year weights

D. Aggregate averages

16 / 40

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

A. Consistency and reversal tests

B. Exponential growth assumptions

C. Statistical bias tests

D. Arithmetic and harmonic mean tests

17 / 40

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

A. Minimize inflation rates

B. Forecast population growth

C. Simplify data interpretation

D. Provide insights into economic trends

18 / 40

18. Quantity indices are typically used for:

A. Calculating inflation rates

B. Studying price trends

C. Evaluating changes in output or consumption

D. Analyzing income distribution

19 / 40

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

A. Quantity index numbers

B. Value index numbers

C. Weighted index numbers

D. Price index numbers

20 / 40

20. The Laspeyre’s Price Index formula includes:

A. The mean of price and quantity

B. Current year quantities as weights

C. Base year quantities as weights

D. The median of prices over time

21 / 40

21. The time reversal test ensures that

A. Trends are reversible under specific conditions

B. Averages are unaffected by price changes

C. Data reliability is maximized

D. The index remains consistent over different periods

22 / 40

22. 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 total quantities in two periods

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

23 / 40

23. Irving Fisher introduced:

A. The ideal index formula

B. Paasche’s Price Index

C. Simple aggregate methods

D. Laspeyre’s Price Index

24 / 40

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

A. Eliminate statistical bias

B. Minimize errors in data collection

C. Simplify data aggregation

D. Combine Laspeyre’s and Paasche’s indices

25 / 40

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

A. Current year quantities

B. Average prices

C. Weighted aggregates

D. Base year prices

26 / 40

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

A. The unit of measurement for commodities

B. Statistical averages

C. Price variations

D. Importance assigned to each commodity

27 / 40

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

A. The geometric index

B. The L-P formula

C. The average of simple aggregates

D. The ideal price index

28 / 40

28. A reliable base period should ideally:

A. Be free from economic disruptions

B. Be closer to the current year

C. Exclude periods of high inflation

D. Have minimal data points

29 / 40

29. Price index numbers are classified into:

A. Evaluate corporate performances

B. Predict future stock prices

C. Track changes in specific phenomena

D. Evaluate corporate performances

30 / 40

30. 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. Averages are statistically unbiased

D. Time periods are reversed without affecting the index

31 / 40

31. Weighted aggregate methods are preferred because they:

A. Simplify complex calculations

B. Avoid issues with quantity indices

C. Reflect the relative importance of commodities

D. Ignore minor price variations

32 / 40

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

A. 100

B. 50

C. 0

D. 200

33 / 40

33. The purchasing power of money is measured using:

A. Price index numbers

B. Quantity index numbers

C. Weighted aggregates

D. Statistical averages

34 / 40

34. 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

35 / 40

35. Quantity index numbers measure

A. Variations in production or consumption volumes

B. Financial market trends

C. Changes in corporate profitability

D. Price changes over time

36 / 40

36. Index numbers are used to measure:

A. Statistical errors in surveys

B. Seasonal variations in production

C. Changes in market structure

D. Relative changes in phenomena over time

37 / 40

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

A. The geometric mean of base and current year prices

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

C. The weighted average of price aggregates

D. The harmonic mean of all index values

38 / 40

38. Price index numbers are classified into:

A. Weighted and unweighted

B. Quantity and value indices

C. Wholesale and retail price indices

D. Simple and compound

39 / 40

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

A. It requires excessive data

B. It cannot handle price fluctuations

C. It ignores differences in units of measurement

D. It uses fixed-base periods

40 / 40

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

A. Focuses only on prices

B. Uses weighted averages

C. Allows comparisons across changing base periods

D. Ignores quantity indices

Your score is

The average score is 46%

ACC 213 CBT PRACTICE

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