The Laspeyres index is said to have an upward bias because it: MCQ with Answer and Explanation

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The Laspeyres index is said to have an upward bias because it:

A. Satisfies factor reversal

B. Uses current period quantities

C. Uses geometric mean

D. Ignores substitution effect

Answer: Option D

Solution (By JKExamLibrary)

Using base period quantities, Laspeyres does not allow for substitution away from goods that have become relatively more expensive.

This question belongs to: Accountancy and Statistics Statistics

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If Net Reproduction Rate (NRR) is less than 1, the population will eventually:

A. Decrease

B. Increase

C. Remain constant

D. Become zero

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Correct Answer: Option A

Explanation:
NRR < 1 indicates each generation is not replacing itself, leading to decline.

This question belongs to: Accountancy and Statistics Statistics

Question #2 Report Error

A researcher uses the published census data to study urbanization trends. In this context, the census data is:

A. Primary Data

B. Qualitative Data

C. Experimental Data

D. Secondary Data

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Correct Answer: Option D

Explanation:
Since the data was originally collected by the government and the researcher is reusing it, it acts as secondary data.

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Question #3 Report Error

If a population has a TFR of 2.0 and NRR of 0.9, this implies:

A. The population is at replacement level

B. Mortality among women of reproductive age is high enough to prevent replacement

C. Fertility is low, mortality is zero

D. The population is growing rapidly

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Correct Answer: Option B

Explanation:
Even though TFR is near replacement, NRR

This question belongs to: Accountancy and Statistics Statistics

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