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Vidaara.orgClass 11 · Mathematics
CodeVID-M11-WS
Index Numbers — Practice Worksheet
Chapter: Index Numbers
Topic: Index Numbers
Maximum Marks: 35
Time: 30 minutes
Name: ____________________ Roll No.: __________ Date: ____________

General Instructions

  • All questions are compulsory.
  • Choose the correct option (A, B, C or D) for each question.
  • The answer key is at the end — try the paper first!
Section A — Multiple Choice (1 mark each) 15 × 1 = 15 marks
1.
An index number measures the average change in values relative to a:
  • A.Future year
  • B.Base year
  • C.Random year
  • D.Leap year
2.
The value of the base year in an index number is:
  • A.0
  • B.1
  • C.100
  • D.10
3.
A price index of 130 (base = 100) means prices rose on average by:
  • A.30%
  • B.130%
  • C.13%
  • D.70%
4.
Index numbers are often called:
  • A.Economic barometers
  • B.Tax tables
  • C.Pie charts
  • D.Ledgers
5.
The simple aggregative price index formula is:
  • A.(ΣP₁ ÷ ΣP₀) × 100
  • B.ΣP₁ × ΣP₀
  • C.ΣP₀ ÷ ΣP₁
  • D.ΣP₁ − ΣP₀
6.
If ΣP₀ = 80 and ΣP₁ = 100, the simple aggregative index is:
  • A.80
  • B.100
  • C.125
  • D.180
7.
The CPI measures changes in:
  • A.Retail prices for households
  • B.Wholesale prices
  • C.Industrial output
  • D.Exports only
8.
The cost-of-living index is another name for the:
  • A.WPI
  • B.CPI
  • C.IIP
  • D.GDP
9.
The WPI measures changes in:
  • A.Wholesale prices of goods
  • B.Retail prices
  • C.Industrial output
  • D.Wages
10.
The Index of Industrial Production (IIP) measures the change in:
  • A.Prices
  • B.Volume of industrial output
  • C.Population
  • D.Rainfall
11.
Workers' dearness allowance is usually linked to the:
  • A.IIP
  • B.CPI
  • C.Rainfall index
  • D.GDP
12.
A sustained rise in the general price level is:
  • A.Deflation
  • B.Inflation
  • C.Recession
  • D.Surplus
13.
Inflation reduces the ____ of money.
  • A.Weight
  • B.Purchasing power
  • C.Colour
  • D.Size
14.
If the index rises from 250 to 275 in a year, inflation is:
  • A.10%
  • B.25%
  • C.2.5%
  • D.275%
15.
Inflation especially hurts people with:
  • A.Fixed incomes
  • B.No income data
  • C.Rising incomes
  • D.Index numbers
Section B — Challenge / Olympiad (2 marks each) 10 × 2 = 20 marks
16.
The price index of a city is 100 in 2020 and 144 in 2025. Over these five years, prices on average rose by:
  • A.44%
  • B.144%
  • C.44 index points only, meaning nothing
  • D.5%
17.
A worker's dearness allowance is linked to the CPI so that when prices rise his pay can rise too. This shows index numbers help:
  • A.Protect real income against inflation
  • B.Increase production
  • C.Lower wholesale prices
  • D.Measure rainfall
18.
A drawback of the simple aggregative method is that it:
  • A.Ignores the relative importance (weight) of items
  • B.Cannot be calculated
  • C.Uses no prices
  • D.Always gives 100
19.
If the IIP rises from 120 to 132, industrial output grew by:
  • A.10%
  • B.12%
  • C.132%
  • D.20%
20.
To compare today's cost of a family's shopping with five years ago, the right index is the:
  • A.CPI
  • B.IIP
  • C.Export index
  • D.Rainfall index
21.
Choosing an abnormal year (e.g. a famine year) as the base year is wrong because the index would:
  • A.Give a misleading picture of normal change
  • B.Always be 100
  • C.Measure output
  • D.Become negative
22.
Even if the overall price index rose 8%, an individual item's price may have:
  • A.Risen more, risen less, or even fallen
  • B.Risen exactly 8% always
  • C.Stayed at 100
  • D.Become an output figure
23.
Both CPI and WPI measure prices, but they differ because the WPI covers:
  • A.Wholesale (bulk) prices and excludes services
  • B.Only retail food
  • C.Industrial output
  • D.Population
24.
Why does the RBI watch the CPI closely?
  • A.To monitor and control inflation
  • B.To count factories
  • C.To measure rainfall
  • D.To fix exam dates
25.
If prices double compared with the base year, the price index becomes:
  • A.200
  • B.100
  • C.50
  • D.2

Answer Key

Section A — Multiple Choice (1 mark each)
  1. (B) Base year
  2. (C) 100
  3. (A) 30%
  4. (A) Economic barometers
  5. (A) (ΣP₁ ÷ ΣP₀) × 100
  6. (C) 125
  7. (A) Retail prices for households
  8. (B) CPI
  9. (A) Wholesale prices of goods
  10. (B) Volume of industrial output
  11. (B) CPI
  12. (B) Inflation
  13. (B) Purchasing power
  14. (A) 10%
  15. (A) Fixed incomes
Section B — Challenge / Olympiad (2 marks each)
  1. (A) 44%
  2. (A) Protect real income against inflation
  3. (A) Ignores the relative importance (weight) of items
  4. (A) 10%
  5. (A) CPI
  6. (A) Give a misleading picture of normal change
  7. (A) Risen more, risen less, or even fallen
  8. (A) Wholesale (bulk) prices and excludes services
  9. (A) To monitor and control inflation
  10. (A) 200
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