Related InterviewSolutions

• Describe the uses of index number. What considerations are taken into account while selecting the base year for the preparation of an index number ?
• What are the considerations underlying the choice of base period in the constructions of an index number?
• What is the difference between a price index and a quantity index ?
• Price Relatives `=("Current Year Price")/(?)xx100`A. Reference year priceB. Periodic year priceC. Base year priceD. both (a) and (c)
• Rate of inflation is equal to: [A = Price index]A. `(A_(1))/(A_(2)+A_(1))xx100`B. `(A_(2)+A_(1))/(A_(1))xx100`C. `(A_(1))/(A_(2)-A_(1))xx100`D. `(A_(2)-A_(1))/(A_(1))xx100`
• Consumer Price Index is also known as:A. Industrial Production IndexB. Cost of Living IndexC. Wholesale Price IndexD. none of these
• Explain the significance of index numbers.
• State the major commodity groups in the Consumer Price Index for Industrial Workers in India.
• Why do we need an index number ?
• State one principal limitation of index numbers.