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This set of Quantitative Methods for Economic Analysis 2 Multiple Choice Questions & Answers (MCQs) focuses on Quantitative Methods For Economic Analysis II Set 2

Q1 | Area of the rejection region depends on
  • size of α
  • size of β
  • test-statistic
  • number of values
Q2 | Level of significance is also called
  • power of the test
  • size of the test
  • level of confidence
  • confidence coefficient
Q3 | Critical region is also called
  • acceptance region
  • rejection region
  • confidence region
  • statistical region
Q4 | The weighted average of price relations using basic values as weights is same asthe ………………
  • laspeyres quantity index
  • paasches’ price index
  • laspeyres price index
  • kelly’s price index
Q5 | Which one of the following indices satisfies both time reversal and factor reversallist ?
  • lasperyres index number
  • fischer’s index number
  • paasches index number
  • bowley’s index number
Q6 | Which one of the following index numbers is based on Geometric Mean ?
  • lasperyres index number
  • fischer’s index number
  • paasches index number
  • bowley’s index number
Q7 | If the Paasches’ index is 196 and Fishers index is 210, What is the value of theLaspeyres’ index?
  • 220
  • 215
  • 225
  • 230
Q8 | The major purpose of price index is to measure change in the …………
  • standard of living
  • gold content of money
  • buying power of money
  • capacity to produce
Q9 | Which of the following statement is not correct ?Fishers’ index :
  • lies between laspeyres’ (l) & paasches’ index
  • is the arithmetic mean of l & p
  • is the geometric mean of l & p
  • is equal to l or p if l = p
Q10 | In consumer price index number weights are determing on the basis of ………..
  • actual price of the index
  • the consumption pattern of the class of population
  • actual consumption expenditure
  • both price & consumption expenditure
Q11 | Consumer price index number indicates
  • the general price level
  • the wholesale price level
  • export price
  • all of these
Q12 | Index Numbers measure
  • the change in base year prices
  • the change in current year prices
  • real changes
  • none of the above
Q13 | The day to day irregularities in business activity are the example of
  • secular trend
  • seasonal fluctuations
  • cyclical fluctuations
  • random or erratic fluctuations
Q14 | Fisher’s ideal index Number satisfies
  • time reversal & factor reversal list
  • only time reversal list
  • only factor reversal list
  • circular list
Q15 | Fishers ideal index is obtained as :
  • the sum of laspeyre’s & paasche’s indices
  • the geometric mean of laspeyer’s & paasche’s indices
  • the arithemetic mean of laspeyer’s & paasche’s indices
  • the harmonic mean of laspeyre’s & paasche’s indices
Q16 | ∑ ∑ × 100 is the formula for calculating ……..
  • bowley’s index
  • fisher’s index
  • laspeyer’s index
  • paasche’s index
Q17 | Laspeyres index measures change in
  • fixed market basket
  • current consumption
  • both fixed and current market basket
  • none
Q18 | is the formula for calculating
  • fishers index
  • bowley’s method
  • laspeyre’s index
  • paasche’s index
Q19 | Recurrent variations in time series that usually last longer than a year is known as ……………
  • seasonal variation
  • secular trend
  • irregular variation
  • cyclical variation
Q20 | Paasche’s index measures change in
  • fixed market basket
  • current consumption
  • both fixed and current market
  • none
Q21 | A lock-out in a factory for a month is associated with the component of timeseries
  • trend
  • seasonal variation
  • cyclic variation
  • irregular variation
Q22 | Consumer price index number is constructed for
  • a well defined section of people
  • workers only
  • all people
  • all the above
Q23 | Which one is not the test of index Number
  • unit test
  • time reversal test
  • triangular test
  • factor reversal test
Q24 | The average of Laspeyre’s and Paasche’s index number which gives Fisher’sindex number is
  • am
  • gm
  • hm
  • weighted average