Quiz 1-Index Number

There are 3 factors that should be considered in constructing index numbers EXCEPTS ...

• Number of items to be included

• the base year

• price of the item

• the weights to be used

The base year is the year that is used to compare its value with the values of the other years.

• True

• False

What is the formula for 'Simple Relative Quantity Index'?

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This formula refers to ...

• Simple Aggregate Quantity Index

• Simple Aggregate Price Index

• Simple Relative Quantity Index

• Simple Average Quantity Index

There are two types of weighted indices that are commonly used namely Laspeyres' and Paasche's.

• FALSE

• TRUE

Laspeyres' Price Index uses ________________ as the weight.

• the current year quantities

• the base year prices

• the base year quantities

• the current year prices

Laspeyres Quantity Index uses ________________ as the weight.

• the current year quantities

• the base year prices

• the base year quantities

• the current year prices

Paasche's Quantity Index uses ________________ as the weight.

• the current year quantities

• the base year prices

• the base year quantities

• the current year prices

Paasche's Price Index uses ________________ as the weight.

• the current year quantities

• the base year prices

• the base year quantities

• the current year prices

What is the name for the above formula?

• Simple Average Price Index

• Simple Average Quantity Index

• Simple Aggregate Price Index

• Simple Aggregate Quantity Index