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GK questions and answers on Indian Economy: Index of Industrial Production

09-MAR-2018 22:52
    GK Quiz on Index of Industrial Production

    The Central Statistics Office (CSO) is a department under "Ministry of Statistics and Program Implementation" which collects and publishes data related to the Index of Industrial Production (IIP) since 1950. This set of quiz has 9 questions with answers and explanation related to the Index of Industrial Production (IIP). We hope that it will be useful for all the competitive exams held in India.

    1. How many setters are covered in the calculation of the Index of Industrial Production (IIP)?

    (a) 5

    (b) 6

    (c) 7

    (d) 8

    Answer d

    Explanation: In the calculation of Index of Industrial Production (IIP), the data of the following 8 sectors is measured. These sectors are;

    1. Coal  

    2. Crude oil

     3. Natural gas

    4. Refinery product

     5. Fertilizer

     6. Steel

     7. Cement

     8. Electricity

    2. Currently, What is the base year of the Index of Industrial Production (IIP)?

    (a) 2004-05

    (b) 2011-12

    (c) 2015-15

    (d) 2001-02

    Answer b

    Explanation: The Central Statistics Office (CSO) which comes under the Ministry of Statistics and Programme Implementation, revised the base year of the Index of Industrial Production (IIP) from 2004-05 to 2011-12.It is revised to not only reflect the changes in the industrial sector but to also align it with the base year of the Wholesale Price Index (WPI) and Gross Domestic Product (GDP).

    3. Which of the following sector has the most weight in the Index of Industrial Production?

    (a) Steel

    (b) Electricity

    (c) Refinery Products

    (d) Coal

    Answer c

    Explanation: The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).All the sectors of the Index of Industrial Production (IIP) has a weight; used in the calculation of index. The weight of all these sectors is as follows;

    i. Coal: Its weight is 10.33%.

    ii. Crude oil: Its weight is 8.98%.

    iii. Natural gas: Its weight is 6.88%.

    iv. Refinery Product: Its weight is 28.04%.

    v. Steel: Its weight is 17.92%.

    vi. Cement: Its weight is 5.37%.

    vii. Fertilizer: Its weight is 2.63%.

    viii. Power: Its weight is 19.85%.

    4. Who publishes the Index of Industrial Production (IIP) data?

    (a) Central Statistical Office (CSO)

    (b) Department of Census

    (c) National Sample Survey Office (NSSO)

    (d) None of the above

    Answer a

    Explanation: Central Statistical Office (CSO) is a department under "Ministry of Statistics and Program Implementation" which collects and publishes data related to the Industrial Production Index (IIP) since the 1950.

    5. For which of the following sector, the Index of Industrial Production (IIP) is not calculated?

    (a) Coal sector

    (b) Refinery products

    (c) Agricultural sector

    (d) Steel sector

    Answer c

    Explanation: In the calculation of the Index of Industrial Production (IIP), statistics of 8 sectors are counted, which includes all the three sectors except agriculture sector.

    6. Which formula is used for calculating the weighted mean of the sectors related to the Index of Industrial Production (IIP)?

    (a) Karl Pearson's Formula

    (b) Spearman's formula

    (c) Laspeyres' formula

    (d) None of the above

    Answer c

    Explanation: The Laspeyres' formula is used to calculate the weighted mean of the sectors measured in the Index of Industrial Production (IIP).

    7. How many items have been included in the manufacturing sector in the new series of Index of Industrial Production (IIP)?

    (a) 456

    (b) 809

    (c) 520

    (d) 397

    Answer b

    Explanation: In the new series of Index of Industrial Production (IIP), 809 items have been included in the manufacturing sector. Earlier, in the 2004-05 series, 620 items were included in the manufacturing sector's list.

    8. When data related to the Index of Industrial Production (IIP) published?

    (a) Annually

    (b) Quarterly

    (c) Weekly

    (d) Monthly

    Answer d

    Explanation: Indices of Industrial Production Index (IIP) are released every month in India. These figures indicate the increase or decrease in production compared to the base year.

    9. In order to calculate the Index of Industrial Production (IIP) in India, which year was first considered as base year?

    (a) 1937

    (b) 1951

    (c) 1948

    (d) 1985

    Answer a

    Explanation: The first base year of the Index of Industrial Production (IIP) in India was 1937.

    GK questions and answers on Indian Economy: WPI and CPI

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