Students of class 11 Economics should refer to MCQ Questions Class 11 Economics Index Numbers with answers provided here which is an important chapter in Class 11 Economics NCERT textbook. These MCQ for Class 11 Economics with Answers have been prepared based on the latest CBSE and NCERT syllabus and examination guidelines for Class 11 Economics. The following MCQs can help you to practice and get better marks in the upcoming class 11 Economics examination

Chapter 8 Index Numbers MCQ with Answers Class 11 Economics

MCQ Questions Class 11 Economics Index Numbers provided below have been prepared by expert teachers of grade 11. These objective questions with solutions are expected to come in the upcoming Standard 11 examinations. Learn the below provided MCQ questions to get better marks in examinations.

Question. The index used to measure changes in total money value is called:
(a) Price index
(b) Quantity index
(c) Value index
(d) None of the above

Question. The Paasche’s index number is based on:
(a) Base year quantities
(b) Current year quantities
(c) Average of current and base years
(d) None of the above

Question. Which of the following formulae is propounded by Fisher?
(a) 𝑃01=𝛴𝑝1𝑞1𝛴𝑝0𝑞1
(b) 𝑃01=Σ𝑝1𝑞0Σ𝑝0𝑞0×100
(c) 𝑃01=√𝛴𝑝1𝑞0𝛴𝑝0𝑞0×𝛴𝑝1𝑞1𝛴𝑝0𝑞1×100
(d) None of these

Question. In notation P01, 1 stand for:
(a) current year
(b) reference year
(c) both (a) and (b)
(d) none of these

Question. Price Relatives = Current Year Price ?×100
(a) Reference year price
(b)Periodic year price
(c) Base year price
(d)Both (a) and (c)

Question. Consumer Price Index is also known as:
(a) Industrial Production Index
(b) Cost of Living Index
(c) Wholesale Price Index
(d) none of these

Question. If the index of prices is estimated to be 112 in 2018, it means that in comparison to the base year, prices in 2018 are higher by:
(a) 12%
(b) 12 × 2 = 24%
(c) 112%
(d) none of these

Question. The best average for constructing an index number is:
(a) Harmonic Mean
(b) Arithmetic Mean
(c) Geometric Mean
(d) None of these

Question. Fisher’s index number is considered ideal because:
(a) it is based on variable weights
(b) it satisfies Time Reversal Test
(c) it satisfies Factor Reversal Test
(d) all of these

Question. Which of the following equations is correct?
(a) 𝑃01=𝛴𝑅𝑊/𝛴𝑊×100
(b) 𝑃01=𝛴𝑅𝑊/𝛴𝑊
(𝑐)𝑃01=𝛴𝑊/Σ𝑅𝑊×100
(𝑑)𝑃01=𝛴𝑊/𝛴𝑅𝑊

Question. Base year is also known as:
(a) current year
(b) reference year
(c) periodic year
(d) both (a) and (c)

Question. Rate of inflation is equal to:
(a) 𝐴1/𝐴2+𝐴1×100
(b) 𝐴2+𝐴1/𝐴1×100 
(c) 𝐴1/𝐴2−𝐴1×100
(d) 𝐴2−𝐴1/𝐴1×100

Question. 𝑃01=Σ𝑝1𝑞0/Σ𝑝0𝑞0×100 is the formula of:
(a) Laspeyre’s Method
(b) Paasche’s Method
(c) Fisher’s Method
(d) none of these

Question. The aggregate index formula using base period quantities is known as:
(a) Laspeyre’s index
(b) Fisher’s Ideal index
(c) Bowley’s index
(d) Paasche’s index

Question. Whose formula is considered ideal for the construction of index number?
(a) Paasche’s formula
(b) Laspeyer’s formula
(c) Fisher’s formula
(d) None of these

Question. Fisher’s Ideal index is the:
(a) Mean of Laspeyre’s and Paasche’s indexes
(b) Median of Laspeyre’s and Paasche’s indexes
(c) Geometric mean of Laspeyre’s and Paasche’s indexes
(d) None of the above

Question. Fisher’s method of calculating index numbers is based on:
(a) arithmetic mean
(b) harmonic mean
(c) geometric mean
(d) none of these

Question. We use price index numbers:
(a) To measure and compare prices
(b) To compare prices
(c) To measure prices
(d) None of these

Question. Index number for the base period is always taken as:
(a) 100
(b) 50
(c) 1
(d) 200

We hope the above multiple choice questions for Class 11 Economics for Chapter 8 Index Numbers provided above with answers based on the latest syllabus and examination guidelines issued by CBSE, NCERT and KVS are really useful for you. Index Numbers is an important chapter in Class 11 as it provides very strong understanding about this topic. Students should go through the answers provided for the MCQs after they have themselves solved the questions. All MCQs have been provided with four options for the students to solve. These questions are really useful for benefit of class 11 students. Please go through these and let us know if you have any feedback in the comments section.