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. Retail price indices are designed to

A. Reflect consumer price variations

B. Evaluate industrial production

C. Monitor export trends

D. Evaluate industrial production

2 / 40

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

A. Only base year quantities

B. Weighted averages of prices in the base year

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

D. Simple aggregates of quantiti

3 / 40

3. Index numbers for deflation are used to:

A. Measure inflationary pressures

B. Adjust nominal values to real terms

C. Compare income levels across regions

D. Analyze population growth

4 / 40

4. Laspeyre’s Price Index uses:

A. Geometric mean of prices

B. Current year weights

C. Aggregate averages

D. Base year quantities as weights

5 / 40

5. Quantity index numbers measure

A. Variations in production or consumption volumes

B. Changes in corporate profitability

C. Price changes over time

D. Financial market trends

6 / 40

6. The Laspeyre’s Price Index formula includes:

A. Current year quantities as weights

B. The mean of price and quantity

C. Base year quantities as weights

D. The median of prices over time

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

A. Statistical bias tests

B. Arithmetic and harmonic mean tests

C. Exponential growth assumptions

D. Consistency and reversal tests

9 / 40

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

A. Minimize errors in data collection

B. Simplify data aggregation

C. Eliminate statistical bias

D. Combine Laspeyre’s and Paasche’s indices

10 / 40

10. 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

11 / 40

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

A. 50

B. 100

C. 0

D. 1

12 / 40

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

A. Their price fluctuations

B. All the options

C. Their availability across periods

D. Their relevance to the study

13 / 40

13. Value index numbers consider

A. Average price changes only

B. Both price and quantity changes

C. Retail prices exclusively

D. Wholesale prices exclusively

14 / 40

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

A. Current year quantities

B. Average prices

C. Weighted aggregates

D. Base year prices

15 / 40

15. 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

16 / 40

16. 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

17 / 40

17. Problems in the construction of index numbers include:

A. Difficulty in selecting a base period

B. Challenges in choosing appropriate averages

C. Lack of reliable data

D. All the options

18 / 40

18. Simple aggregate method is calculated as:

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

B. A weighted average of prices in the current year

C. The difference between wholesale and retail prices

D. The ratio of total quantities in two periods

19 / 40

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

A. Averages are statistically unbiased

B. Time periods are reversed without affecting the index

C. Price and quantity indices yield consistent results

D. Data remains reliable across multiple calculations

20 / 40

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

A. The average of simple aggregates

B. The ideal price index

C. The geometric index

D. The L-P formula

21 / 40

21. 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

22 / 40

22. Quantity indices are typically used for:

A. Calculating inflation rates

B. Analyzing income distribution

C. Evaluating changes in output or consumption

D. Studying price trends

23 / 40

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

A. Units of measurement

B. Arithmetic means

C. Price variations

D. Weighted averages

24 / 40

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

A. Arbitrary values

B. Their cost price

C. Relative importance in the group

D. Random sampling

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 weighted average of price aggregates

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

26 / 40

26. A reliable base period should ideally:

A. Have minimal data points

B. Be free from economic disruptions

C. Exclude periods of high inflation

D. Be closer to the current year

27 / 40

27. Weighted aggregate methods are preferred because they:

A. Reflect the relative importance of commodities

B. Simplify complex calculations

C. Ignore minor price variations

D. Avoid issues with quantity indices

28 / 40

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

A. Study individual consumer preferences

B. Evaluate industrial output

C. Track retail pricing trends

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

29 / 40

29. 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

30 / 40

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

A. Forecast population growth

B. Minimize inflation rates

C. Simplify data interpretation

D. Provide insights into economic trends

31 / 40

31. The primary use of index numbers is to:

A. Study microeconomic trends

B. Evaluate corporate performances

C. Predict future stock prices

D. Track changes in specific phenomena

32 / 40

32. Irving Fisher introduced:

A. Simple aggregate methods

B. Paasche’s Price Index

C. The ideal index formula

D. Laspeyre’s Price Index

33 / 40

33. The purchasing power of money is measured using:

A. Weighted aggregates

B. Quantity index numbers

C. Statistical averages

D. Price index numbers

34 / 40

34. Price index numbers are classified into:

A. Quantity and value indices

B. Weighted and unweighted

C. Simple and compound

D. Wholesale and retail price indices

35 / 40

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

A. Allows comparisons across changing base periods

B. Ignores quantity indices

C. Focuses only on prices

D. Uses weighted averages

36 / 40

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

A. Value index numbers

B. Weighted index numbers

C. Price index numbers

D. Quantity index numbers

37 / 40

37. 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

38 / 40

38. 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

39 / 40

39. The time reversal test ensures that

A. The index remains consistent over different periods

B. Averages are unaffected by price changes

C. Data reliability is maximized

D. Trends are reversible under specific conditions

40 / 40

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

A. Price variations

B. Statistical averages

C. The unit of measurement for commodities

D. Importance assigned to each commodity

Your score is

The average score is 46%

ACC 213 CBT PRACTICE

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