If the Laspeyres Quantity Index Exceeds 1, Then

question 57

Multiple Choice

If the Laspeyres quantity index exceeds 1, then:

• A)the consumption bundle in period 1 is preferred to that of period 0.
• B)both consumption bundles are equally preferred.
• C)the consumption bundles cannot be compared.
• D)the consumption bundle in period 0 is preferred to that of period 1.

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Definitions:

Lease

A contractual agreement by which one party conveys property, services, or land to another for a specified time, in return for a periodic payment.

Tenancy in Common

A form of joint ownership or tenancy where each owner holds an individual, undivided interest in the property, and such interests can be of different sizes.

Joint Tenancy

A form of co-ownership of property where two or more individuals hold equal shares, and upon the death of one tenant, their share automatically passes to the surviving tenant(s).

Common Law

A system of law developed from court-made precedents rather than statutes passed by legislatures.