Question 12 Marks
Convert the following index numbers obtained by fixed base method about the production of craft industry of a state into the chain base index numbers.
Answer
Since the base year is not mentioned here, we will take 100 as the chain base index number for the first year.Chain base index number $=\frac{\text { Fixed base index number of current year }}{\text { Fixed base index number of preceding year }} \times 100$
View full question & answer→Question 22 Marks
The data about bi-monthly closing prices of shares of a company in the year $2014$ are given. Compute the chain base index numbers from these data.
AnswerThe price for the month before January is not given here. Hence, we will take the index number for January, $2014$ as $100.$ The calculation of index numbers for remaining months using the chain base method are shown in the following table.
View full question & answer→Question 32 Marks
The data about sugar production of a sugar manufacturing company from the year $2008$ to $2015$ are as follows. Prepare index number by fixed base method from these data by taking average production of the years $2009, 2010$ and $2011$ as the production of the base year.
AnswerThe average production of the years $2009,2010$ and $2011=\frac{196+202+214}{3}=\frac{612}{3}=204$
View full question & answer→Question 42 Marks
If the increase in the price relatives of three items are $250 \%, 265 \%$ and $300 \%$ respectively and if the ratio of the importance of these items is $8 : 7 : 5,$ find the general price index number.
AnswerThe percentage increase in the index numbers $($price relatives$)$ and the relative importance We are given here.
We will calculate the index number.
General index number $=\frac{\Sigma I W}{\Sigma W}=\frac{7355}{20}=367.75$
General index number $= 367.75$
Thus, there is a rise of $(367.75 -100) = 267.75 \%$ in the prices in the current year as compared to the base year. View full question & answer→Question 52 Marks
The wholesale price index numbers of the year $2015$ and $2016$ are found to be $150.2$ and $165.7$ respectively. Find the rate of inflation using index numbers of both the years.
AnswerThe index number ofthe year $2015$ is $150.2$ and the index number ofcurrent year $2016$ is $165.7.$
We will use the following formula of the rate of inflation.
$\begin{aligned}\text { Rate of inflation }&=\frac{\left(\begin{array}{c}\text { Wholesale price index } \\\text { number of current year }\end{array}\right)-\left(\begin{array}{c}\text { Wholesale price index } \\\text { number of previous year }\end{array}\right)}{\text { Wholesale price index number of previous year }} \times 100 \\&=\frac{165.7-150.2}{150.2} \times 100 \\&=\frac{15.5}{150.2} \times 100 \\&=10.3196 \\& \simeq 10.32\end{aligned}$
Thus, rate of inflation is $10.32 \%$.
View full question & answer→Question 62 Marks
If the cost of living index number of the current year has increased to $180$ from the base year index number $100$ and if the average income of workers has increased from $Rs. 6000$ to $Rs. 9000,$ is there an increase or decrease in the purchasing power of the workers ? How much is it ?
AnswerThe index number has increased to $180$ from $100$ here which means that there is an increase of $80 \%.$
Hence, the income should also increase by $80 \%.$
$ \text { Average income } =6000+\left(6000 \times \frac{80}{100}\right)$
$ =6000+4800=₹ 10,800 $
Hence, the average income of workers should be $₹ 10,800.$
But the average income of workers has increased to $₹ 9000.$
Thus, there is a decrease of $(10800 - 9000) = ₹ 1800$ in the average income with reference to the index number.
Hence, it can be said that there is a decrease in their purchasing power.
View full question & answer→Question 72 Marks
If the average monthly disposable income of middle class families in the year $2014$ is $₹ 14,400$ and if the cost of living index number for the year $2015 $with the base year $2014$ is $115$ then estimate the average monthly disposable income of these families in the year $2015.$
AnswerThe cost ofliving index number ofthe middle class families for the year $2015$ is $115$ with the base year $2014.$
Hence, the index number has increased by $(115 - 100) = 15 \%$ as compared to the base year.
Thus, there should be a $15 \%$ rise in the average disposable income ofthe middle class families.
$ \therefore \text { Average monthly disposable income of thefamilies }$
$=14400+\left(14400 \times \frac{15}{100}\right)$
$ =14400+2160=16560$
Hence, the average monthly disposable income ofthese families in the year $2015$ should be $₹ 16,560.$
View full question & answer→Question 82 Marks
If $\Sigma p_{1} q_{0}: \Sigma p_{0} q_{0}=3: 2$ and $\Sigma p_{1} q_{1}: \Sigma p_{0} q_{1}=5: 3$, find $I_{L}, I_{P}$ and $I_{F}$.
Answer$ \frac{\Sigma p_{1} q_{0}}{\Sigma p_{0} q_{0}} =\frac{3}{2}$
$I_{L} =\frac{\Sigma p_{1} q_{0}}{\Sigma p_{0} q_{0}} \times 100$
$ =\frac{3}{2} \times 100=150 $
$ \frac{\Sigma p_{1} q_{1}}{\Sigma p_{0} q_{1}} =\frac{5}{3}$
$I_{P} =\frac{\Sigma p_{1} q_{1}}{\Sigma p_{0} q_{1}} \times 100$
$ =\frac{5}{3} \times 100=166.67 $
$I_{F}=\sqrt{I_{L} \times I_{P}}=\sqrt{150 \times 166.67}=\sqrt{25000.5}=158.12$
View full question & answer→Question 92 Marks
The production of an item in the year $2015$ has increased by $3$ times the production in the base year. Find the index number of production for the year $2015.$
AnswerConsider the index number of the base year as $100.$
The production has increased by $3$ times in the year $2015.$
$ \text { Production index number of year } 2015=\text { index number of base year }+\text { increase in index }$
$ \text { number in current year }$
$= 100+(3 \times 100)$
$= 100+300=400 $
View full question & answer→Question 102 Marks
The Laspeyre's index number is $\frac{8}{9}$ times the Fisher's index number. If the Fisher's index number is $180,$ find the Paasche's index number.
AnswerThe Laspeyre's index number is $\frac{8}{9}$ times the Fisher's index number.
$\therefore I_{L}=\frac{8}{9} \times I_{F}$
$ \therefore I_{L} =\frac{8}{9} \times 180$
$I_{L} =160$
$\text { Now, } I_{F} =\sqrt{I_{L} \times I_{P}}$
$180 =\sqrt{160 \times I_{P}}$
$(180)^{2} =160 \times I_{P}$
$\therefore I_{P} =\frac{180 \times 180}{160}=202.5 $
View full question & answer→Question 112 Marks
The price of wheat was ? $1600$ per quintal in the year $2014$ and it was ? $1800$ per quintal in the year $2015.$ Find the price index number of wheat for the year $2015$ with the base year $2014$ and interpret it.
AnswerPrice index number of wheat for year $2015$
$I=\frac{p_{1}}{p_{0}} \times 100$
$ =\frac{1800}{1600} \times 100$
$ =112.5$
Thus, it can be said that there is a rise of $(112.5-100)=12.5 \%$ in the price of wheat per quintal in the year $2015$ as compared to the year $2014 .$
View full question & answer→Question 122 Marks
The data about wholesale prices of wheat in a region are as follows. Taking the year $2005$ as the base year, prepare the index numbers for the price of the item for the remaining years. State the percentage increase in the price of wheat in the year $2013$ from these index numbers.
AnswerWe will find the fixed base index number as the year $2005$ is to be taken as the base year. The index number for the price of wheat in the year $2005$ will be taken as $100.$
It can be said that the increase in the price of wheat in the year $2013$ is $(118.18 -100) = 18.18 \%$ with respect to the year $2005.$ View full question & answer→Question 132 Marks
What is a base year ? Which points should be considered while choosing it ?
AnswerA fixed period with which the value of a variable for the current period is compared, is called base year.
The following points should be considered while choosing it :
- The base year should be standard or normal.
- It should be free from natural calamities like floods, draught, earthquake, abnormal man-made events like war, revolt, riot, strike, agitation, political events, economic disturbances, etc.
- It should not be from a distant past.
- It should be so selected that reveal the realistic picture of the current situation.
- If a single period is not normal then it should be selected as the average of some past periods.
View full question & answer→Question 142 Marks
The following data are given about the index numbers and weights for the items of living o industrial workers in a city in the year $2014.$ Find the cost of living index number for industrial workers. If the average monthly salary paid to these workers in the year $2012$ was $Rs. 6,000$, what should be the monthly salary in the current year $2014$ to maintain the same standard of living ?
| Group |
Food |
Fuel and Electricity |
Housing |
Clothing |
Miscellaneous expense |
| Price index of $2014 ($Base year $2012)$ |
$255$ |
$174$ |
$234$ |
$153$ |
$274$ |
| Weight |
$42$ |
$8$ |
$12$ |
$18$ |
$20$ |
AnswerAns: Cost of living Index Number $= \frac{\Sigma lw}{\Sigma w} = \frac{23,400}{100} = 231.44$
Here, in comparison of $2012,$ in $2014$ there is a rise of $31.44\% (231.44-100)$ in the cost of living.
The monthly salary in the current year $2014$ to maintain the same standard of living
$=$ Average monthly salary $= \frac{\text { Current year Index Number }}{\text { Base year Index Number }}\ ×$ Average salary of Base year
$= \frac{23144}{100} \times 6000$
$= 13,886.40$
$\therefore $ Average monthly salary of the year $2014 = Rs. 13.886.40$
View full question & answer→Question 152 Marks
The wholesale price index numbers for the year $2014$ and $2015$ are found to be $177.6$ and $181.2$ respectively. Find the rate of inflation using index numbers of both the years.
AnswerWholesale price index number for the year $2014=177.6$ and
Wholesale price index number for the year $2015=181.2$
Rate of inflation $=\frac{\binom{\text { Wholesale price index }}{\text { number for the year 2015 }}-\binom{\text { Wholesale price index }}{\text { number for the year 2014 }}}{\text { Wholesale price index number for the year 2014 }} \times 100$
$ =\frac{3.6}{177.6} \times 100$
$ =0.0203 \times 100$
$ =2.03 \%$
View full question & answer→Question 162 Marks
The cost of living index numbers and average monthly wage from the year $2010$ to $2013$ are given as follows. Find the real wage for each year.
| Year |
$2010$ |
$2011$ |
$2012$ |
$2013$ |
| Average monthly wage $(Rs.)$ |
$35,000$ |
$40,000$ |
$42,000$ |
$50,000$ |
| Cost of living index number |
$120$ |
$150$ |
$130$ |
$160$ |
View full question & answer→Question 172 Marks
The cost of living Index Number increased from $280$ to $340$ during a certain time period and the wage increased from $Rs. 13,500$ to $Rs. 14,750.$ Find the real gain or loss of the worker.
AnswerWhen cost of living index number is $280 ,$ then wage $=₹ 13500$
$\therefore$ Cost of living index number is $340 ,$ then wage
$=\frac{13500 \times 340}{280}$
$ =\frac{4590000}{280}$
$ =₹ 16392.86$
But the wage of a worker becomes $₹ 14750 .$
So, the loss of the worker $=₹(16392.86-14750)=₹ 1642.86$
View full question & answer→Question 182 Marks
State the main difference between explicit weight and implicit weight.
AnswerMain difference between implicit weight and explicit weight is under :
| Points |
Implicit Weight |
Explicit Weight |
| $1.$ Meaning |
The weights are included in the selection of items and they cannot be expressed numerically.
This indirect method of assigning weight is called implicit weight. |
The weight to be assigned are determined in proportion to the importance of the item and can be expressed numerically.
Such weight is called explicit weight. |
| $2.$ Calculation |
Implicit weight is decided in the selection of commodities.
Type of commodity is taken as weight.
Like, in food items if $4$ types of rice is selected then their weight will be $4.$ |
Explicit weight is decided on the basis of use of commodity, sales, expenditure done, which is in proportion to the production of commodity. Like in food items, rice has double importance than wheat, then direct weight of rice $= 2$ and wheat $= 1.$ |
| $3.$ Numerical presentation |
Indirect weight can not be shown in number. |
Direct weight can be shown in number. |
| $4.$ Method |
This is an indirect method to give weight. Therefore, there is no method to decide it. |
This is direct method to give weight there are two methods of it : $(i)$ Total Expenditure Method and $(ii)$ Family Budget Method |
View full question & answer→Question 192 Marks
Why is Fisher’s index number called an ideal number ?
AnswerThe Fisher’s index number is called an ideal index number due to the following reasons :
- Fisher’s index number considers and quantities of both the years, base year and current year in the construction of the index number.
- It satisfies both the important fundamental tests, time reversal and factor reversal tests, of index number.
- The geometric mean is used to calculate this index number which is the best average for the construction of index number.
- It balances the demerits of Laspeyre’s and Paasche’s index numbers.
View full question & answer→Question 202 Marks
What is weight in the construction of index numbers ? State the types of weight.
AnswerWeights : The importance of different items is different in list of selected items for the construction of Index Number.
- Therefore, a weight is choosen for the relevant item according to the importance of its usage.
- Weights are of two kinds $: (a)$ Implicit weight $(b)$ Direct weight.
- $(a)$ Implicit Weight :
- This weight is implied in the selection of the commodity.
- It cannot be expressed into numbers e.g. If from four types of wheat, one type of wheat is to be purchased, then it is Indirect Weight.
- This method is an indirect method to give the weightage.
- $(b)$ Direct $($Explicit$)$ Weight :
- If the weights are assigned according to the importance of different commodities, then they are called direct or explicit weights.
- Direct weights can be expressed in numbers.
- e.g. If monthly consumption of electricity is $60$ units, then the price of electricity per unit is multiplied by $300$ and then their expenditures are obtained.
- So, the direct weight of electricity is $300.$
- The two methods of assigning explicit weight are as follow :
- $(i)$ Method of total expenditure
- $(ii)$ Method of family budget.
View full question & answer→Question 212 Marks
State the characteristics of index number.
AnswerThe percentage change in the value of a variable associated with any item for the given $($current$)$ period compared to its value in a fixed $($base$)$ period is called an index number
Characteristics of an Index Number :
$(i)$ Index number is a specific average because it shows the average measure of the average of percentage change occuring in variable value measured in different units.
$(ii)$ Index number is a relative measure, therefore it is independent of units of measurements.
$(iii)$ The changes in the values of the variable having different units can be compared by index number.
$(iv)$ Index number is a comparative measure.
$(v)$ The situation at two different periods can be compared by ratio with the standard period using an index number.
View full question & answer→Question 222 Marks
If $\mathrm{I}_{\mathrm{L}}=221.5$ and $\mathrm{I}_F=222$ find $\mathrm{I}_{\mathrm{P}}$
Answer$ \mathrm{I}_{\mathrm{L}}=221.5, \mathrm{I}_{\mathrm{F}}=222, \mathrm{I}_{\mathrm{P}}=?$
$ \mathrm{I}_{\mathrm{F}}=\sqrt{I_L \times I_P}$
$ \therefore 222=\sqrt{221.5 \times \mathrm{I}_{\mathrm{P}}}$
$ \therefore(222)^2=221.5 \times \mathrm{I}_{\mathrm{P}}$
$ \therefore \frac{49284}{221.5}=\mathrm{I}_{\mathrm{p}}$
$ \therefore \mathrm{I}_{\mathrm{p}}=222.5$
View full question & answer→Question 232 Marks
If the production of an item increased by times in the year $2016$ as compared to the base year, find the index number of production for the year $2016.$
AnswerSuppose the production of base year $=1$
$\therefore$ The production in the year $2016$
$=1+\left(1 \times \frac{9}{5}\right)=1+\frac{9}{5}=\frac{14}{5}$
$\therefore$ The index number of production for the year $2016=\frac{\frac{14}{5}}{1} \times 100$ $=\frac{14}{5} \times 100=280$
View full question & answer→Question 242 Marks
The average monthly income of a worker was $Rs. 16,000$ in the year $2015$ and it increased to $Rs. 20,000$ in the year $2016.$ Find the index number of income for the year $2016$ in comparison to the year $2015.$
AnswerThe average monthly income of a worker in the year $2015=₹ 16000$ and in the year $2016=₹20000$
$\therefore$ The index number of income for the year $2016=\frac{\text { Average monthly income in } 2016}{\text { Average monthly income in } 2015} \times 100$ $=\frac{20000}{16000} \times 100$
$=1.25 \times 100=125$
View full question & answer→Question 252 Marks
If the average disposable income of family of a class is $Rs. 25,000$ in the year $2014$ and if the cost of living index number of that class for the year $2016$ with the base year $2014$ is $120,$ estimate the average disposable income of the family of that class in the year $2016.$
AnswerThe average disposable income of family of a class $= ₹ 25000$ in the year $2014.$
Base year is $2014.$
So the cost of living index number for the year $2014 = 100$.
Cost of living index number for the year $2016 = 120.$
Now, if the index number is $100,$ then the average disposable income is $= ₹ 25000.$
$\therefore $ If the index number is $120,$
then the average disposable income $ = \frac{25000 \times 120}{100} = ₹ 30000$
View full question & answer→Question 262 Marks
The percentage increase in the price relatives of three items are $315,328$ and $390$ respectively. If the importance of these items has ratio $5:7:8,$ find the general price index number.
Answer
General price index number $=$ 
$= \frac{8991}{20}$
∴ General price index number $= 449.55$ View full question & answer→Question 272 Marks
As compared to the year $2015 ,$ the percentage increase in the average income of a worker is $40 *$ in the year $2017 ,$ while it is $25 \%$ in the cost of living expenditure Is his buying capacity increased or decreased? By what percentage?
View full question & answer→Question 282 Marks
As compared to base year the percentage increase in the price of current year is $20 \%$, while increase in the income is $25 \%$. Find the percentage increase in the real income.
View full question & answer→Question 292 Marks
${∑p_1q_0} = 520, {∑p_0q_0} = 416, {∑p_1q_1} = 860, {∑p_0q_1} = 580,$ Find Laspeyre’s, Paasche’s and Fisher’s index numbers.
Answer$I_L = 125, I_P = 148.28, I_F = 136.14$
View full question & answer→Question 302 Marks
From the data on price and quantity of items, the following results are obtained:
Answer$I_L = 125, I_P = 148.28, I_F = 136.14$
View full question & answer→Question 312 Marks
If the ratio of Laspeyre’s and Fisher’s index numbers is $25 : 24$ and Paasche’s index number is $115.2,$ find Laspeyre’s and Fisher’s index numbers.
AnswerLaspeyre’s index number $= 125$ and Fisher's index number $= 120$
View full question & answer→Question 322 Marks
If $ I_F = 130$ and $ I_P= 125 $, find $ I_L $
View full question & answer→Question 332 Marks
As compared to base year if the price of current year is $10 \%$ low, find the index numbers for the base year and current year. If the current year’s price of an item is $Rs. 60$ per unit, what will be the price of the item in the base year?
AnswerBase year's price $= Rs. 66.67$
View full question & answer→Question 342 Marks
In $2017$ the price of Dal is increased by $2\frac 12$ times the price of base year. Find the index number of price of Dal in the year $2017.$
View full question & answer→Question 352 Marks
The average monthly income of an employee was $Rs. 24000$ in the year $2016$ which become $Rs. 28320$ in the year $2017.$ Obtain the income index number for the year $2017$ as compared to the year $2016.$
View full question & answer→Question 362 Marks
If for the year $2016,$ the average expense of middle class families is $8000$ and for the same class of people the cost of living index number of the year $2017$ on the basis of year $2016$ Is $120,$ then obtain the estimate of average expense of these families for the year $2017.$
View full question & answer→Question 372 Marks
During a period, the cost of living index number of working class people has increased from $100$ to $160,$ and the monthly wage of a worker from $Rs. 15000$ to $Rs. 18000.$ Find profit or loss to the worker. Is his purchasing capacity increased or decreased?
AnswerLoss $Rs.6000;$ purchasing capacity decreased
View full question & answer→Question 382 Marks
The real wage of a worker during July, $2017$ was $Rs. 2780.$ If the cost of living index number for the class of worker for the month of July, $2017$ is $260,$ then what will be the wage of the worker for July, $2017?$
View full question & answer→Question 392 Marks
With reference to the year $2016$ the prices of three items are increased by $1\frac 12$ times, $2$ times and $1 \frac 34$ times respectively in the year $2017.$ If their relative importance is in the proportion $2 : 3 : 5,$ find the general price index number.
View full question & answer→Question 402 Marks
The rate of inflation is $5 \%.$ If the wholesale price index number for the year $2017$ is $157.5,$ find the wholesale price index number for the year $2016.$
View full question & answer→Question 412 Marks
If the rate of inflation is $8 \%$ and index number of price for the year $2016$ is $200,$ what will be the price index number for the year $2017?$
View full question & answer→Question 422 Marks
What Is a base year? Which points should be considered while choosing it?
AnswerA fixed period with which the value of a variable for the current period is compared, is called base year. The following points should be considered while choosing it:
$(1)$ The base year should be standard or normal.
$(2 )$ It should be free from natural calamities like floods, draught, earthquake, abnormal manmade events like war, revolt, riot, strike, agitation, political events, economic disturbances, etc.
$(3 )$ It should not be from a distant past.
$(4 )$ It should be so selected that reveal the realistic picture of the current situation.
$(5 )$ If a single period is not normal then it should be selected as the average of some past periods.
View full question & answer→Question 432 Marks
If $\mathrm{L}_{\mathrm{L}}=80$ and $\mathrm{I}_F=100$ find $\mathrm{I}_p$.
Answer$ \text { Here, } I_L=80 ; I_F=100$
$I_F=\sqrt{I_L \times I_P}$
$\therefore 100=\sqrt{80 \times \mathrm{I}_P}$
$\therefore(100)^2=80 \times I_P$
$\therefore 10,000=80 \times \mathrm{I}_P$
$\therefore I_P=\frac{10,000}{80}$
$\therefore I_P=125 $
View full question & answer→Question 442 Marks
If $\mathrm{I}_L=100$ and $\mathrm{I}_{\mathrm{F}}=150$ find $\mathrm{I}_P$
Answer$ \mathrm{I}_L=100 ; \mathrm{I}_F=150$
$\mathrm{I}_F=\sqrt{\mathrm{I}_L \times \mathrm{I}_P}$
$\therefore 150=\sqrt{100 \times \mathrm{I}_P}$
$\therefore(150)^2=100 \times \mathrm{I}_P$
$\therefore 22,500=100 \times \mathrm{I}_P$
$\therefore \mathrm{I}_P=\frac{22,500}{100}$
$\therefore \mathrm{I}_P=225 $
View full question & answer→Question 452 Marks
If $\Sigma p_1 q_0=2,470, \Sigma p_0 q_0=2,080, \Sigma p_1 q_1=3,160$ and $\Sigma p_0 q_1=2,650$ then find fisher's index number.
AnswerHere, $\Sigma p_1 q_0=2,470, \Sigma p_0 q_0=2,080, \Sigma p_1 q_1=3,160$ and $\Sigma p_0 q_1=2,650$
$\mathrm{I}_{\mathrm{f}} =\sqrt{\frac{\sum p_1 q_0}{\sum p_0 q_0} \times \frac{\sum p_1 q_1}{\sum p_0 q_1}} \times 100$
$ =\sqrt{\frac{2,470}{2,080} \times \frac{3,160}{2,650}} \times 100$
$ =\sqrt{1.1875 \times 1.1924} \times 100$
$ =\sqrt{1.415975} \times 100$
$ =1.19 \times 100$
$ =119$
View full question & answer→Question 462 Marks
"The cost of living index numbers and average monthly wage from the year 2020 to 2023 are given. Find the real wage for each year :
| Year | 2020 | 2021 | 2022 | 2023 |
| Average monthly wage (₹) | 36,000 | 40,000 | 52,000 | 56,000 |
| Cost of living index number | 120 | 150 | 130 | 160 |
AnswerReal Wage = $\frac{\text{Average Monthly Wage}}{\text{Cost of Living Index Number}} \times 100$
2020: $\frac{36000}{120} \times 100 = 30,000$
2021: $\frac{40000}{150} \times 100 = 26,666.67$
2022: $\frac{52000}{130} \times 100 = 40,000$
2023: $\frac{56000}{160} \times 100 = 35,000$
View full question & answer→Question 472 Marks
Why is Fisher's index number called an ideal number ?
AnswerFisher's index number is called an ideal index number because :
1. It takes into account both base year and current year quantities.
2. It is the geometric mean of Laspeyre's and Paasche's index numbers, which is the best average.
3. It satisfies both the Time Reversal Test and the Factor Reversal Test.
4. It is free from bias.
View full question & answer→Question 482 Marks
The wholesale price Index Number for commodities with the year. (base year 2007-08. are as follows. Compute the chain base Index Numbers.
| Year | 2008-09 | 2009-10 | 2010-11 | 2011-12 |
| Wholesale price index number | 126 | 130.8 | 143.3 | 156.1 |
| Year | 2012-13 | 2013-14 | 2014-15 | 2015-16 |
| Wholesale price index number | 167.6 | 177.6 | 181.2 | 177.2 |
AnswerFormula: Chain Base I.N. = $ \frac{\text{Current Year Fixed Base I.N.}}{\text{Previous Year Fixed Base I.N.}} \times 100 $
2008-09: 100 (Since it's the first year and base year is 2007-08)
2009-10: $ \frac{130.8}{126} \times 100 = 103.81 $
2010-11: $ \frac{143.3}{130.8} \times 100 = 109.56 $
2011-12: $ \frac{156.1}{143.3} \times 100 = 108.93 $
2012-13: $ \frac{167.6}{156.1} \times 100 = 107.37 $
2013-14: $ \frac{177.6}{167.6} \times 100 = 105.97 $
2014-15: $ \frac{181.2}{177.6} \times 100 = 102.03 $
2015-16: $ \frac{177.2}{181.2} \times 100 = 97.79 $
View full question & answer→Question 492 Marks
The cost of living index number increased from 160 to 200 during a certain time period and the wage is increased from ₹ 20,000 to ₹ 24,000. Find the real gain or loss of the worker.
AnswerRequired Wage = $\frac{\text{Current Index}}{\text{Base Index}} \times \text{Base Wage}$
Required Wage = $\frac{200}{160} \times 20,000 = ₹ 25,000$.
Actual Wage = ₹ 24,000.
Real Loss = 25,000 - 24,000 = ₹ 1,000.
View full question & answer→