Tag: important index numbers

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Questions Related to important index numbers

Multiple choice social science index number value and price important index numbers price rise/inflation

In India, inflation is measured through __________.

  1. Consumer Price Index

  2. Producer Price Index

  3. Wholesale Price Index

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Inflation rates in India are usually quoted as changes in the Wholesale Price Index (WPI), for all commodities.

The Wholesale Price Index (WPI) is the price of a representative basket of wholesale goods.

Multiple choice social science index number value and price important index numbers price rise/inflation

Consumer price index is also known as ____.

  1. cost of living index

  2. cost of consumption index

  3. IIP

  4. none of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Consumer Price Index is widely used as a measure of inflation and is often referred to as the cost of living index because it tracks the price changes of goods and services that households consume.

Multiple choice social science index number value and price important index numbers price rise/inflation

The CPI for industrial workers and agricultural labourers are published by ______.

  1. Labour Bureau, Shimla

  2. CSO

  3. NFRA

  4. NSSO
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In India, the Labour Bureau, which is part of the Ministry of Labour and Employment, is responsible for compiling and publishing the CPI for industrial workers and agricultural/rural labourers.

Multiple choice social science index number value and price important index numbers price rise/inflation

The average monthly salary of a PSU employee was Rs. 40,000 in 2000 with a consumer price index of 150. In December 2006 the Consumer price index rose to 195 points. The increase in the monthly salary of the employee in order to neutralize the effect of inflation necessary is ______.

  1. Rs. 10,000

  2. Rs. 12,000

  3. Rs. 8000

  4. Rs. 9000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

To neutralize inflation, the salary must increase proportionally to the CPI. The ratio of the new CPI to the old CPI is 195/150 = 1.3. Multiplying the original salary of 40,000 by 1.3 gives 52,000, which is an increase of 12,000.

Multiple choice social science index number value and price important index numbers price rise/inflation

CPI for industrial workers(1982=100) is 526 in January 2005 which would mean ______.

  1. the industrial worker has to pay Rs. 526 in January 2005 to survive

  2. if the industrial worker spent Rs 100 in 1982 for a basket of commodities, he needs Rs 526 in January 2005 to be able to buy an identical basket of commodities.

  3. the industrial worker has to pay Rs. 526 in January 2005 on basic commodities

  4. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A CPI of 526 with a base year of 1982 means that a basket of goods costing 100 in 1982 would cost 526 in 2005. This index represents the relative change in the cost of a fixed basket of goods over time.

Multiple choice social science index number value and price important index numbers price rise/inflation

The average monthly emoluments of PSU officers were Rs. 25,000 p.m. in 2006 when the consumer price index was 150 in 2006, in 2014 their monthly emoluments went up to Rs. 40,000 due to additional DA paid from time to time which is directly based on consumer price index. The Consumer price index in 2014 is____.

  1. 210

  2. 240

  3. 196

  4. 215
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The salary increase is proportional to the CPI increase. The ratio of salaries is 40,000 / 25,000 = 1.6. Multiplying the base CPI of 150 by 1.6 gives 240.