Index Numbers Class 11 MCQ Questions Economics are covered in this Article. Index Numbers Class 11 MCQ Test contains 18 questions. Answers to MCQs on Index Numbers Class 11 Economics are available after clicking on the answer. These MCQs have been made for Class 11 students to help check the concept you have learned from detailed classroom sessions and the application of your knowledge.
| Subject | Economics (MCQ) |
| Topic | Index Numbers Class 11 MCQs |
| Category | Economics Class 11 MCQs |
Index Numbers Class 11 MCQ Questions Economics
1. ________ helps us find out percentage change in the values of different variables over time
(a) Dispersion
(b) Correlation
(c) Index numbers
(d) Price index
Answer
Answer: (c) Index numbers
2. According to ______, the index number is a statistical measure designed to show changes and a variable or group of related variables with respect to time, geographic location, or other characteristics.
(a) Bowley
(b) Spiegel
(c) Croxton
(d) Cowden
Answer
Answer: (b) Spiegel
3. _______ are the index number in which all items of series are recorded equal weightage or importance.
(a) Price index
(b) Simple index
(c) Linear index
(d) Multiple indexes
Answer
Answer: (b) Simple index
4. ________ index numbers in which different items of the series are recorded different which is depending upon their importance
(a) Price index
(b) Simple index
(c) Linear index
(d) Complex index
Answer
Answer: (d) Complex index
5. ________ is the percentage ratio of the value of a variable in the current year to its value in the base year.
(a) Price relative
(b) Simple index
(c) Linear index
(d) Complex index
Answer
Answer: (a) Price relative
6. Which of the following are the features of index numbers?
(a) Index number measured relative changes
(b) Index number is a quantitative expression
(c) Index number show changes in terms of averages
(d) All of the above
Answer
Answer: (d) All of the above
7. Which of the following are the problems faced in the construction of index numbers?
(a) Measurement of change in the price level
(b) Selection of formula
(c) Knowledge of the change in the standard of living
(d) Information regarding production
Answer
Answer: (b) Selection of formula
Index Numbers Class 11 MCQ Questions Economics
8. Which of the following are the advantages of index numbers?
(a) Useful to government
(b) Information regarding foreign trade is available
(c) Both a and b
(d) None of the above
Answer
Answer: (c) Both a and b
9. Which of the following are the limitations of index numbers?
(a) Index numbers are not completely true
(b) Index numbers can’t facilitate international comparison
(c) Index numbers have limited use
(d) All of the above
Answer
Answer: (d) All of the above
10. Which of the following are the methods of constructing index numbers?
(a) Simple aggregate method
(b) Simple average of price relative method
(c) Weighted average of price relative method and weighted aggregate method
(d) All of the above
Answer
Answer: (d) All of the above
11. Read the following statements given below and choose the correct alternative.
Statement 1- The choice of method for the construction of an index number entirely depends upon the object with which a particular index number is constructed
Statement 2- Fisher’s method is considered an ideal method to construct index numbers.
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: (a) Both are correct
12. Read the following statements given below and choose the correct alternative.
Statement 1- Fisher’s method is based on exact weights.
Statement 2- Fisher’s method takes into consideration the price and quantity of the current year and base year.
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: (d) Statement 1 is incorrect and statement 2 is correct
13. Read the following statements given below and choose the correct alternative.
Statement 1- The factor reversal test implies that the formula for calculating an index number should be such that it will give the same ratio between one point of comparison and the other.
Statement 2- The time reversal test implies just as the formulas should permit the interchange of 2 items without giving inconsistent results.
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: (b) Both are incorrect
14. Read the following statements given below and choose the correct alternative.
Statement 1- The consumer price index is the number that measures the average change and prices paid by the specific laws of consumers for goods and services consumed by them in the current year in comparison with the base year.
Statement 2- consumer price index doesn’t indices the cost of living.
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: (c) Statement 1 is correct and statement 2 is incorrect
15. Read the following statements given below and choose the correct alternative.
Statement 1- The consumer price index helps in the formulation of price policy.
Statement 2- The consumer price index does not measure the real value.
(a) Both are correct
(b) Both are incorrect
(c) Statement 1 is correct and statement 2 is incorrect
(d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: (c) Statement 1 is correct and statement 2 is incorrect
16. Read the following statements given below and choose the correct alternative.
Assertion- wholesale price index measures the relative changes in the price of commodities traded in the wholesale markets.
Reason- wholesale price index is used for forecasting demand and supply.
(a) Both assertion and reason are true. The reason is the correct explanation of the assertion
(b) Both assertion and reason are not true. The reason is not the correct explanation of the assertion
(c) Assertion is true but the reason is not
(d) Reason is true but the assertion is not
Answer
Answer: (b) Both assertion and reason are not true. The reason is not the correct explanation of the assertion
17. Read the following statements given below and choose the correct alternative.
Assertion- Inflation refers to the situation of rising the general price level in our country over a fairly long period of time.
Reason- Inflation is measured in terms of a consumer price index.
(a) Both assertion and reason are true. The reason is the correct explanation of the assertion
(b) Both assertion and reason are true. The reason is not the correct explanation of the assertion
(c) Assertion is true but the reason is not
(d) Reason is true but the assertion is not
Answer
Answer: (b) Both assertion and reason are true. The reason is not the correct explanation of the assertion
18. Read the following statements given below and choose the correct alternative.
Assertion- inflation causes erosion of purchasing power of people to live their money income remains constant
Reason- fall in the rate of inflation implies a fall in the price level.
(a) Both assertion and reason are true. The reason is the correct explanation of the assertion
(b) Both assertion and reason are not true. The reason is not the correct explanation of the assertion
(c) Assertion is true but the reason is not
(d) Reason is true but the assertion is not
Answer
Answer: (c) Assertion is true but the reason is not
Term 2 – NCERT Economics Class 11 MCQ
Part A – MCQ Questions for Class 11 Statistics Economics
- Statistical Tools and Interpretation – Measures of Dispersion, Correlation, Index Number
- Measures of Dispersion MCQ Class 11 Economics
- Correlation MCQ Class 11 Economics
- Index Numbers Class 11 MCQ Questions Economics
Part B – MCQ Questions for Class 11 Microeconomics
- Producer Behaviour and Supply
- Forms of Market and Price Determination under perfect competition with simple applications