Distinguish between quantity index number and value index number.

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Q. Distinguish between quantity index number and value index number.

Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2025Subjective· 2mImportance★★★★★

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A quantity (volume) index number tracks the change in physical quantities alone; a value index number tracks the change in total value (price times quantity), reflecting both price and quantity movements together.

Distinction between Quantity Index Number and Value Index Number

Basis	Quantity Index Number	Value Index Number
Meaning	Measures change in the physical volume/quantity of goods	Measures change in the total money value of goods
What it reflects	Only changes in quantity	Combined change in both price and quantity
Data used	Quantities of the current and base periods	Value (price × quantity) of the current and base periods
Use	Studying changes in production, consumption or physical output	Studying changes in total expenditure, sales turnover or trade value
Example	Index of industrial/agricultural production	Index of total exports or total retail sales value
…

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2026Set ANNUAL1 mark
$Q. Find the odd word: Types of Index Numbers: Selection Index Number, Price Index number, Value Index Number, Quantity Index Number$
›Reveal solutionSolution
Odd word = Selection Index Number.

Index numbers are classified into these standard types:

Price index number — measures changes in the general price level.

Quantity index number — measures changes in the volume of goods produced or consumed. …
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CBSE 2026Set ANNUAL1 markMCQ
$Q. Statements that are incorrect in relation to index numbers - Index number is a geographical tool. Index numbers measure changes in the air pressure. Index numbers measure relative changes in economic variable. Index numbers are specialized averages.$
(a) c, d
(b) a, b
(c) b, c
(d) a, b, c, d
›Reveal solutionSolution
The incorrect statements about index numbers are (a) and (b), so the answer is a, b.

An index number is a statistical device that measures relative changes in an economic variable (such as prices or output) over time. Judging each statement:

(a) 'Index number is a geographical tool' — incorrect; it is a statistical tool, not a geographical one. …
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CBSE 2025Set ANNUAL1 markMCQ
$Q. The Price Index number is used ______.$
(a) to measure the general changes in the prices of goods.
(b) as a geographical tool.
(c) to measure the air pressure.
(d) in measurement of goods.
›Reveal solutionSolution

The correct answer is to measure the general changes in the prices of goods.

A price index number is a statistical measure that shows the average change in the prices of a group of goods and services between a base year and a current year, expressed as a percentage of the base. It captures the general movement of prices (rise or fall) rather than the price of a single item, and is widely used to study inflation and the cost of living. The other option …

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CBSE 2023Set ANNUAL1 markMCQ
$Q. Find the odd word out: Types of Simple Index Number:$
(a) Laspeyre’s Price Index Number
(b) Price Index Number
(c) Quantity Index Number
(d) Value Index Number
›Reveal solutionSolution
The odd word is Laspeyre's Price Index Number — it is a weighted index number, while price, quantity and value index numbers are the ordinary (simple) types.

Index numbers can be classified by method of construction (simple/unweighted vs weighted) and by content (price, quantity, value):

Price Index Number — measures change in price levels.

Quantity Index Number — measures change in physical volume of goods.

Value Index Number — measures change in total value (price × quantity). …
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CBSE 2022Set ANNUAL1 markMCQ
$Q. Assertion and reasoning question: Assertion (A): The index number considers all factors. Reasoning (R): The index number is based on samples.$
(a) Assertion (A) is true but Reasoning (R) is false.
(b) Assertion (A) is false but Reasoning (R) is true.
(c) Both statements (A) and (R) are true and (R) is the correct explanation of (A).
(d) Both statements (A) and (R) are true and (R) is not the correct explanation of (A).
›Reveal solutionSolution

The correct option is Assertion (A) is false but Reasoning (R) is true.

An index number measures the relative change in a group of related variables (like prices) over time. It is constructed from a sample of representative items, not from every single commodity or factor in the economy — so reasoning (R) is true. Precisely because it rests on samples, an index number does not consider all factors; it gives only an a …

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Q.Distinguish between quantity index number and value index number.

Concept understanding — Meaning, Features and Types of Index Numbers

Q.Distinguish between quantity index number and value index number.

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