CBSE Class 11 Economics Introduction to index numbers Assignment

Points to remember

-- An index number is a statistical device for measuring changes in the magnitude of a group of related variables.

* Features of Index Numbers

-- Index numbers are expressed in terms of percentages. However, percentage sign (%) is never used.

-- Index numbers are relative measurement of group of data.

-- Index numbers offer a precise measurement of the quantitative change in the concerned variables over time.

-- Index numbers shows changes in terms of averages.

* Types of Index numbers

(i) Wholesale price index (WPI)

(ii) Consumer price index (CPI) or

Cost of living index

(iii) Index of industrial production (IIP)

(iv) Index of Agricultural production (IAP)

(v) Sensex

Question

1. What do you mean by index numbers?

2. State two categories of price index jumbers.

3. Define base year.

4. Name the consumer groups for which CPI is computed.

5. What is price relative?

6. Give Laspeyre’s formula for weighted index number.

7. Where can we get some important index numbers such as CPI, WPI IIP etc.? 

8. Write the formula for calculating index of industrial production.

9. How many types of CPI are constructed in India?

10. Define current year.

11. What is the difference between simple index number and weighted index numbers?

12. Give the formula to calculate the rate of inflation.

13. Which sign is used to indicate the price index number?

14. What does wholesale price index indicate?

15. Give Paasche’s formula for weighted index number.

16. Which index number is known as cost of living index?

17. Mention the weight of primary articles in wholesale price index.

18. In how many groups all the commodities are classified for WPI?

19. Mention the weightage of different groups in index of industrial production.

20. Which index number is generally used to measure inflation?

21. Which change is measured in consumer price index?

22. Which item having the highest weight in CPI for industrial worker?

23. In which index number there is a relative importance of the items?

SHORT ANSWER TYPE QUESTIONS.

 MARKS QUESTIONS

1. State three difficulties of constructing index numbers.

2. What are the desirable properties of the base period?

3. Why do we need an index number?

4. Write a short note on inflation and index numbers.

5. Why is it essential to have different CPI for different categories of consumers?

6. Mention the difficulties in construction of consumer price index.

7. What is the difference between a price index and a quantity index?

8. Define index number. State its utility

9. What does an index of industrial production measure? Give formula to calculate IIP.

10. Calculate price index number for 2004 taking 1994 as the base year from the following data by simple aggregative method:

Please refer to attached file for CBSE Class 11 Economics Introduction to index numbers