The Laspeyres Index and the Paasche Index Are Both Examples

question 7

Multiple Choice

The Laspeyres index and the Paasche index are both examples of ________ aggregate price indexes.

• A) irregular
• B) cyclical
• C) trend
• D) weighted

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Definitions:

Output

The quantity of products or services generated by a business, sector, or economic system over a certain timeframe.

Wage

Compensation or payment to an employee for labor or services rendered, typically expressed on an hourly, daily, or piecework basis.

Marginal Product

The additional output resulting from the use of one more unit of a production input, holding other inputs constant.

Wage

A wage is the compensation paid to employees for their labor, typically calculated on an hourly, daily, or piecework basis.