A weighted price index that uses current-period quantities as weights is known as ________.
A)Fisher's ideal index
B)the Laspeyres index
C)the Paasche index
D)the value index

Question

Quizplus · Accepted Answer

The Paasche index uses current-period quantities as weights, distinguishing it from the Laspeyres index, which uses base-period quantities as weights. Fisher's ideal index is a geometric mean of the Laspeyres and Paasche indexes, and the value index is a more general term not specifically defined by the weighting of quantities.

A Weighted Price Index That Uses Current-Period Quantities as Weights