471. A simple aggregate price index_____________?

A. Ignores relative quantities
B. Compares relative quantities to relative prices
C. Compares absolute prices to absolute quantities
D. Compares relative quantities

472. The Laspeyres and Paasche index are examples of_________________?

A. Aggregate index numbers
B. Weighted index numbers
C. Weighted price index only
D. Weighted quantity index only

473. The formula ∑poqn/∑poqo x100 is used to calculate_______________?

A. The Laspeyres price index
B. The Paasche quantity index
C. The Laspeyres quantity index
D. The Paasche price index

474. A scaling factor is used to_________________?

A. Change a simple index to a weight index
B. Convert the Paasche index to a Laspeyres index
C. Change the base year
D. change an aggregate index to a weighted index

475. All Index numbers are not suitable for all _________________?

A. Kind
B. Chain relative
C. Purpose
D. Price

476. Link relative = ________________?

A. Pn/pn-1 x100
B. Pn/Po x10
C. Pn/Po x100
D. None of these

477. Paasche’s Index number is ______________?

A. ∑pnqo/∑poqo
B. ∑pnqo/∑pnqo x100
C. ∑pnqn/∑poqo
D. ∑pnqn/∑poqn x100

478. Which of the formula is used in chain indices: ________________?

A. ∑pn/∑po x100
B. pn/po x100
C. pn/pn-1 x100
D. Both (a) and (b) but not (c)

479. The index number of base period is always:_______________?

A. 100
B. 200
C. The price of that year
D. None of these

480. The ratio of a new price to the base year price is called the___________?

A. Price decrease
B. Price absolute
C. Price increase
D. Price relative


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