Class 11 Statistics for Economics Ch-8 Index Numbers

NCERT Solutions of Class 11 Statistics for Economics Ch-8 Index Numbers

1. An index number which accounts for the relative importance of the items is known as:
   (i) Weighted Index
   (ii) Simple Aggregative Index
   (iii) Simple Average of Relatives
2. In most of the weighted index numbers the weight pertains to
   (i) base year
   (ii) current year
   (iii) both base and current year
3. The impact of change in the price of a commodity with little weight in the index will be
   (i) small
   (ii) large
   (iii) uncertain
4. A consumer price index measures changes in
   (i) retail prices
   (ii) wholesale prices
   (iii) producers’prices
5. The item having the highest weight in consumer price index for industrial workers is
   (i) food
   (ii) housing
   (iii) clothing
6. In general, inflation is calculated by using
   (i) wholesale price index
   (ii) consumer price index
   (iii) producer’s price index

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Question 7:
Why do we need an index number?

Question 8:
What are the desirable properties of the base period?

Question 9:
Why is it essential to have different CPI for different categories of consumers?

Question 10:
What does a consumer price index for industrial workers measure?

Question 11:
What is the difference between a price index and a quantity index?

Question 12:
Is the change in any price reflected in a price index number?

Question 13:
Can the CPI number for urban non-manual emplyees represent the changes in the cost of living of the President of India?

Question 14:
The monthly per capita expenditure incurred by workers for an industrial centre during 1980 and 2005 on the following items are given below. The weights of these items are 75, 10, 5, 6 and 4 respectively.
Prepare a weghted index number for cost of living for 2005 with 1980 as the base.

Question 15:
Read the following table carefully and give your comments.

Question 16:
Try to list the important items of consumption in your family.

Question 17:
If the salary of a person in the base year is ? 4,000 per annum and the current year salary is ? 6,000 by how much should his salary rise to maintanin the same standard of living if the CPI is 400?

Question 18:
The consumer price index for June, 2005 was 125. The food index was 120 and that of other items
What is the percentage of the total weight given to food?

Question 19:
An enquiry into the budgets of the middle class families in a certain city gave the following information

What is the cost of living index of 2004 as compared with 1995?

Question 20:
Record the daily expenditure quantities bought and prices paid per unit of the daily purchases of your family for two weeks. How has the price change affected your family?

Question 21:
Given the following data