Index numbers are a statistical measure that represent the relative change in a specific variable or a group of variables over time. They are widely used in economics, finance, and various fields to track trends, assess performance, and provide insight into data patterns. This category explores various types of index numbers, including price indices, quantity indices, and value indices, as well as their applications and significance in decision-making processes. Dive into the topics within this category to gain a deeper understanding of how index numbers influence economic indicators and market analysis.
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[q] What is an index number?
A) A statistical measure
B) A type of currency
C) A banking term
D) A type of stock
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[a] A statistical measure [q] Which of the following is a use of index numbers?
A) To compare economic data
B) To calculate interest rates
C) To predict stock prices
D) To establish legal norms [a] To compare economic data [q] What does the Consumer Price Index (CPI) measure?
A) Inflation
B) Employment rates
C) GDP growth
D) Stock market performance [a] Inflation [q] Which index is used to measure the cost of living for consumers?
A) Producer Price Index
B) Consumer Price Index
C) Gross Domestic Product Index
D) Retail Price Index [a] Consumer Price Index [q] What is the base year in an index number?
A) The year with the highest values
B) The year chosen for comparison
C) The most recent year
D) Any historical year [a] {answer_51]} [q] Which of the following is NOT a type of index number?
A) Price index
B) Quantity index
C) Market index
D) Social index [a] Social index [q] What is the primary purpose of a wholesale price index?
A) To measure inflation at the consumer level
B) To measure the price change from seller to buyer
C) To evaluate stock performance
D) To assess employment rates [a] To measure the price change from seller to buyer [q] How is the Laspeyres index calculated?
A) Using current prices and base quantities
B) Using base prices and current quantities
C) Using average prices over time
D) Using median prices only [a] Using base prices and current quantities [q] What does a high index number generally indicate?
A) Stagnation in the economy
B) A decline in prices
C) An increase in prices compared to the base year
D) Stability in the market [a] An increase in prices compared to the base year [q] Which of the following is typically used to calculate an index number?
A) Prices and quantities
B) Interest rates and dividends
C) Exchange rates and taxes
D) Governments and policies [a] Prices and quantities [x]Click here to explore more flashcards: Economics Flashcards [restart] [/qdeck]
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