Index NumbersMCQPYQ May 18Question 3776 of 197
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P01\displaystyle P_{01} is the index for time

Options

A0\displaystyle 0 on 1\displaystyle 1
B0\displaystyle 0 on 0\displaystyle 0
C1\displaystyle 1 on 0\displaystyle 0
D1\displaystyle 1 on 1\displaystyle 1
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Correct Answer

Option c1\displaystyle 1 on 0\displaystyle 0

All Options:

  • A0\displaystyle 0 on 1\displaystyle 1
  • B0\displaystyle 0 on 0\displaystyle 0
  • C1\displaystyle 1 on 0\displaystyle 0
  • D1\displaystyle 1 on 1\displaystyle 1

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Detailed Solution & Explanation

In the notation of index numbers, P01\displaystyle P_{01} represents the price index of the current period 1\displaystyle 1 with respect to the base period 0\displaystyle 0. In other words, it is the index for time 1\displaystyle 1 on 0\displaystyle 0. Hence, **Option C** is the correct answer.

About This Chapter: Index Numbers

Paper

Paper 3: Quantitative Aptitude

Weightage

4-6 Marks

Key Topics

Construction of Index Numbers, Time Series

This chapter covers Construction of Index Numbers, Time Series and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.

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