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Question
State with reasons whether you agree or disagree with the following statement.
There are many types of index numbers.
Options
Agree
Disagree
Solution
I agree with the given statement.
Explanation:
There are indeed many types of index numbers. Index numbers are statistical tools used to measure changes in a variable or group of variables over time.
- Price Index Number: It measures the general changes in the prices of goods. It compares the level of prices between two different time periods.
- Quantity Index Number: It is also called volume index number. It measures changes in the level of output or physical volume of production in the economy, such as changes in agricultural production, industrial production, etc., over a period of time.
- Value Index Number: The value of a commodity is the product of its price and quantity (p × q). Value index number measures the changes in the value of a variable in terms of rupee. It is a more informative index as it combines both, changes in the price as well as quantity.
- Special Purpose Index Number: These numbers are constructed with a specific purpose, such as import-export index numbers, labour productivity index numbers, share price index numbers, etc.
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RELATED QUESTIONS
Complete the Correlation:
Price Index : Inflation :: ______ : Agricultural production
Distinguish between:
Price Index and Quantity Index.
Choose the correct alternative :
Price Index Number by Simple Aggregate Method is given by
Choose the correct alternative :
Quantity Index Number by Simple Aggregate Method is given by
Quantity Index Number by Weighted Aggregate Method is given by ______.
Choose the correct alternative :
Value Index Number by Weighted Aggregate Method is given by
Fill in the blank :
Quantity Index Number by Simple Aggregate Method is given by _______.
Fill in the blank :
Value Index Number by Simple Aggregate Method is given by _______.
Fill in the blank :
Price Index Number by Weighted Aggregate Method is given by _______.
Fill in the blank :
Quantity Index Number by Weighted Aggregate Method is given by _______.
State whether the following is True or False :
`(sum"p"_1)/(sum"p"_0) xx 100` is the price Index Number by Simple Aggregate Method.
`sum ("p"_0"q"_0)/("p"_1"q"_1) xx 100` is Value Index Number by Simple Aggregate Method.
Solve the following problem :
Find the Price Index Number using Simple Aggregate Method. Consider 1980 as base year.
| Commodity | Price in 1980 (in ₹) | Price in 1985 (in ₹) |
| I | 22 | 46 |
| II | 38 | 36 |
| III | 20 | 28 |
| IV | 18 | 44 |
| V | 12 | 16 |
Explain the types of index numbers.
Choose the correct alternative:
`(sum"p"_1"q"_1"w")/(sum"p"_0"q"_0"w") xx 100` gives
Quantity Index Number by Weighted Aggregate Method is given by ______.
Price Index Number by Weighted Aggregate Method is given by ______
Find Price Index Number using Simple Aggregate method by taking 2005 as base year.
| Commodity | P | Q | R | S | T |
| Price in 2005 (in ₹) | 10 | 25 | 14 | 20 | 30 |
| Price in 2015 (in ₹) | 32 | 40 | 20 | 45 | 70 |
Calculate Value Index Number for the following using Simple Aggregate Method
| Commodity | Base Year | Current Year | ||
| Price | Quantity | Price | Quantity | |
| A | 30 | 13 | 40 | 15 |
| B | 40 | 15 | 70 | 20 |
| C | 10 | 12 | 60 | 22 |
| D | 50 | 10 | 90 | 18 |
| E | 20 | 14 | 100 | 16 |
Find Price Index Number using Simple Aggregate method by taking 2000 as base year
| Commodity | Price (in ₹) for year 2000 |
Price (in ₹) for year 2007 |
| Watch | 900 | 1,475 |
| Shoes | 1,760 | 2,300 |
| Sunglasses | 60 | 1,040 |
| Mobile | 4,500 | 8,500 |
Find values x and y if the Price Index Number by Simple Aggregate Method by taking 2001 as base year is 120, given `sum"p"_1` = 300.
| Commodity | A | B | C | D |
| Price (in ₹) in 2001 | 90 | x | 90 | 30 |
| Price (in ₹) in 2004 | 95 | 60 | y | 35 |
Choose the correct pair:
| Group A | Group B |
| A. Price Index | (a) `(sump_1q_1)/(sump_0q_0) xx 100` |
| B. Value Index | (b) `(sumq_1)/(sumq_0) xx 100` |
| C. Quantity Index | (c) `(sump_1q_1)/(sump_0q_1) xx 100` |
| D. Paasche's Index | (d) `(sump_1)/(sump_0) xx 100` |
The Price Index Number for year 2004, with respect to year 2000 as base year. is known to be 130. Find the missing numbers in the following table if ∑p0 = 320
| Commodity | A | B | C | D | E | F |
| Price (in ₹) in 2000 | 40 | 50 | 30 | x | 60 | 100 |
| Price (in ₹) in 2000 | 50 | 70 | 30 | 85 | y | 115 |
Choose the correct pair :
| Group A | Group B |
| 1) Price Index | a) `(sum p_1q_1)/(sum p_0q_0) xx 100` |
| 2) Value Index | b) `(sum q_1)/(sum q_0) xx 100` |
| 3) Quantity Index | c) `(sum p_1q_1)/(sum p_0 q_1) xx 100` |
| 4) Paasche's Index | d) `(sum p_1)/(sum p_0) xx 100` |
Choose the correct pair:
| Group A | Group B |
| 1) Price Index | a) `(sump_1q_1)/(sump_0 q_0) × 100` |
| 2) Value Index | b) `(sumq_1)/(sumq_0) × 100` |
| 3) Quantity Index | c) `(sump_1q_1)/(sump_0 q_1) × 100` |
| 4) Paasche's Index | d) `(sump_1)/(sump_0) × 100` |
Calculate the price index number for the given data.
| Commodity | A | B |
| Price in 2020 (₹) | 20 | 30 |
| Price in 2021 (₹) | 40 | 40 |
Explain the meaning of the Price Index Number.
Identify and explain the concept from the given illustration:
Pooja collected information regarding a change in the quantity of imports of India from 2019 to 2020 and prepared an index number.
Choose the correct pair :
| Group A | Group B | ||
| 1) | Price Index | a) |
`(sump1q1)/(sump0q0)xx100` |
| 2) | Value Index | b) | `(sumq1)/(sumq0)xx100` |
| 3) | Quantity Index | c) | `(sump1q1)/(sump0q1)xx100` |
| 4) | Paasche's Index | d) | `(sump1)/(sump0)xx100` |
Choose the correct pair :
| Group A | Group B | ||
| 1) | Price Index | a) | `(sump_1q_1)/(sump_0q_0) xx 100` |
| 2) | Value Index | b) | `(sumq_1)/(sumq_0) xx 100` |
| 3) | Quantity Index | c) | `(sump_1q_1)/(sump_0q_1) xx 100` |
| 4) | Paasche's Index | d) | `(sump_1)/(sump_0) xx 100` |
Choose the correct pair:
| Group A | Group B | ||
| 1) | Price Index | a) | `(sum"p"_1"q"_1)/(sum"p"_0"q"_0)xx100` |
| 2) | Value Index | b) | `(sum"q"_1)/(sumq"_0)xx100` |
| 3) | Quantity Index | c) | `(sum"p"_1"q"_1)/(sum"p"_0"q"_1)xx100` |
| 4) | Paasche's Index | d) | `(sum"p"_1)/(sum"p"_0")xx100` |
