CA Foundation · Quantitative Aptitude · Index Numbers
The price index for a city with base 2012 = 100 was 200 in 2016 and 250 in 2020. If the base year is shifted to 2016, what is the index number for 2020 on the new base?
The new index for 2020 is 125. Base shifting divides the old index of 2020, which is 250, by the old index of the new base year 2016, which is 200, and multiplies by 100. A ratio is used and not a difference.
- A50
- B150
- C125Correct
- D250
Explanation
New index = old index of the required year / old index of the new base year × 100 = 250 / 200 × 100 = 125. Subtracting 200 from 250 and getting 50 is wrong because indices are shifted by ratio and not by difference.
Did you get it right without looking?
One question tells you little. A timed set on Index Numbers shows your real accuracy, how long you take and where you lose marks.
More Index Numbers questions
- For a group of items, Σp0q0 = 200, Σp1q0 = 260, Σp0q1 = 250 and Σp1q1 = 340. What is the Marshall-Edgeworth price index number?
- A deflated series is built by dividing nominal values by a price index. A firm's sales were ₹80 lakh in 2019 (base year, index 100) and ₹132…
- For a working-class family, the total expenditure on a fixed basket of goods at base-year prices is ₹8,000, and the cost of the same basket …
- Given Σp0q0 = 200, Σp1q0 = 260, Σp0q1 = 250 and Σp1q1 = 300, which statement is correct?
- The price of sugar was ₹40 per kg in 2020 and ₹50 per kg in 2024. Taking 2020 as the base year, what is the price index for 2024?
- A cost of living index is constructed for textile mill workers in Coimbatore using a basket fixed in 2010. By 2024, consumers have largely s…