Index NumbersMCQPYQ Sep 24Question 3820 of 197
All Questions

The value index is equal to:

Options

AThe total sum of the values of a given year plus the sum of the values of the base year
BThe total sum of the values of a given year multiplied by the sum of the values of the base year
CThe total sum of the values of a given year divided by the sum of the values of the base year
DThe total sum of the values of a given year minus the sum of the values of the base year
For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option c — The total sum of the values of a given year divided by the sum of the values of the base year

All Options:

  • AThe total sum of the values of a given year plus the sum of the values of the base year
  • BThe total sum of the values of a given year multiplied by the sum of the values of the base year
  • CThe total sum of the values of a given year divided by the sum of the values of the base year
  • DThe total sum of the values of a given year minus the sum of the values of the base year

Ad

Detailed Solution & Explanation

The **value index** (V01\displaystyle V_{01}) is the ratio of the total value of commodities in the current year to the total value of commodities in the base year: V01=∑p1q1∑p0q0V_{01} = \frac{\sum p_1 q_1}{\sum p_0 q_0} Thus, it is equal to the total sum of the values of a given year **divided by** the sum of the values of the base year. 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.

Related Comparison Tables

Cardinal vs Ordinal Utility: Measuring Satisfaction

More Questions from Index Numbers

In price index, when a new commodity is required to be added, which of the following index is used?

Fisher's ideal formula for calculating index number satisfies the ________

Shifted Price Index = Original Price IndexPrice Index of the year on which it has to be shifted×100\displaystyle \frac{\text{Original Price Index}}{\text{Price Index of the year on which it has to be shifted}} \times 100

If Laspeyres's Index Number is 250 and Paasche's Index Number is 160, then Fisher's Index number is

If ∑P0q0=240\displaystyle \sum P_0q_0 = 240, ∑P1q0=480\displaystyle \sum P_1q_0 = 480, ∑P0q1=600\displaystyle \sum P_0q_1 = 600 and ∑P1q1=192\displaystyle \sum P_1q_1 = 192, then Laspeyres's Index Number is

If ΣPnqn=249\displaystyle \Sigma P_n q_n = 249, ΣP0q0=150\displaystyle \Sigma P_0 q_0 = 150, ΣPnq0=145\displaystyle \Sigma P_n q_0 = 145 and Paasche's Index Number = 150, then Fisher's Ideal Price Index Number is

Ready to Master Index Numbers?

Practice all 197 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free