Index Numbers Practice Flashcards

A set of 20 practice flashcards covering the concepts, formulas, and tests of adequacy for Index Numbers, including stock market indices, based on the provided lecture notes.

Index numbers are described as "special kind of Averages" expressed in RATIO, calculated as PERCENTAGES, and used as __________.

NUMBERS

The base year of an index is denoted by 0, and the Index for this year is always taken as __________.

100

Index numbers are always __________ and are useful in Deflating.

unit free

A __________ Index Number comparison is made in respect of prices and is considered a good measure for Inflation.

Price

In the Simple Aggregate Method, the formula for the Price Index $P_{01}$ is __________ $\times 100$.

$$\frac{\sum P_1}{\sum P_0}$$

The Price Relative (PR) is defined as the "Ratio of Cy Price to that of By Price expressed as __________."

percentage

In weighting Aggregate Index numbers, __________ Index fixes the Base Year Quantity.

Laspeyre's

__________ Index is a type of weighted aggregate index where the Current Year Quantity is fixed.

Paasche's

The __________ Index is calculated as the Arithmetic Mean of Laspeyre’s and Paasche’s indices.

Dorbish-Bowley's

Fisher's Index is calculated as the __________ Mean of Laspeyre’s and Paasche's indices.

Geometric

The __________ Index uses the Arithmetic Average of Base year and current year quantities as weights.

Marshall Edgeworth

Fisher's Index is known as "Fisher's Ideal Index" because the __________ is considered the best mean for ratios and percentages.

GM

When index numbers for different years are expressed in a tabular form to compare changes, it is called an "__________."

INDEX TIME SERIES

The formula for the Value Index Number ($V_{01}$) is defined as __________ $\times 100$.

$$\frac{\sum P_1 q_1}{\sum P_0 q_0}$$

Purchasing power of money is defined as the __________ of the Cost of Living Index (CLI) or Price Index Number.

Reciprocal

In the context of adequacy tests, the __________ says that the index formula should be free from any units and is satisfied by all except the Simple Aggregate method.

UNIT TEST

The __________ Test is satisfied only by the Fisher's Index, where $P_{01} \times Q_{01} = V_{01}$.

FACTOR REVERSAL

The oldest stock exchange in Asia, established in 1875, is the __________.

BOMBAY STOCK EXCHANGE LIMITED

The base year for the BSE SENSEX is __________, with a base value of 100.

1978-1979

The base period for the Nifty 50 index is __________, with a base value of 1000.

3rd November 1995