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Question
Choose the correct alternative:
Consumer price index are obtained by:
Options
Paasche’s formula
Fisher’s ideal formula
Marshall Edgeworth formula
Family budget method formula
Solution
Family budget method formula
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RELATED QUESTIONS
State with reason whether you agree or disagree with the following statement:
Index numbers measure changes in the price level only.
State with reason whether you agree or disagree with the following statement:
Index numbers can be constructed without the base year.
Assertion (A): Index numbers are statistical devices.
Reasoning (R): Index numbers measure only changes in the price level over a period of time.
State the uses of Index Number
Explain Paasche’s price index number
Calculate price index number for 2005 by (a) Laspeyre’s (b) Paasche’s method
| Commodity | 1995 | 2005 | ||
| Price | Quantity | Price | Quantity | |
| A | 5 | 60 | 15 | 70 |
| B | 4 | 20 | 8 | 35 |
| C | 3 | 15 | 6 | 20 |
Compute (i) Laspeyre’s (ii) Paasche’s (iii) Fisher’s Index numbers for the 2010 from the following data.
| Commodity | Price | Quantity | ||
| 2000 | 2010 | 2000 | 2010 | |
| A | 12 | 14 | 18 | 16 |
| B | 15 | 16 | 20 | 15 |
| C | 14 | 15 | 24 | 20 |
| D | 12 | 12 | 29 | 23 |
Choose the correct alternative:
Another name of consumer’s price index number is:
The base year's index of a selected variable is assumed as ______.
Complete the correlation:
P0 : ______ : : P1 : Current year price.
