PRC-2 · Chapter 9 · Question 3 of 60
Which standard mathematical formula is used to 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 expresses the price of a single item in the current period (p1) as a percentage of its price in the base period (p0). The formula is (p1 / p0) * 100.
More Indices MCQs
- Q5Which characteristic is a primary limitation of using the Paasche Price Index in practice?
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