PRC-2 · Chapter 9 · Question 43 of 60
What is the formula to manually calculate a 'Simple Price Relative' for a single commodity?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) (Current Price / Base Price) × 100
Explanation
A simple price relative isolates a single good and calculates its percentage growth by dividing the current period price (pn) by its base period price (p0) and multiplying by 100.
More Indices MCQs
- Q45If an official government price index rises from 100 in 2015 to 142 in 2024, what is the precise interpretation of this data?
- Q46What is the standard formula utilized to calculate a 'Simple Price Relative' for a single, isolated commodity?
- Q47In the construction of a Laspeyres Price Index, what specific data is utilized as the fixed mathematical weighting factor?
- Q48Conversely, what specific data does the Paasche Price Index utilize as its weighting factor?
- Q49How is Fisher's Ideal Index mathematically defined in statistical theory?