PRC-2 · Chapter 9 · Question 47 of 60
In the construction of a Laspeyres Price Index, what specific data is utilized as the fixed mathematical weighting factor?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Base year quantities (q0)
Explanation
The Laspeyres price index relies entirely on a fixed, historical basket of goods. Therefore, it mathematically uses the base year quantities (q0) strictly as its weighting factor in both the numerator and denominator.
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