Which of the Following Is the Correct Interpretation of a Laspeyres

question 17

Short Answer

Which of the following is the correct interpretation of a Laspeyres price index of 135, where the base year is 2007 and the current year is 2010? $\begin{array}{|l|l|}\hline A&\text { According to the Laspeyres price index, prices have risen by \( 35 \% \) from 2007 to 2010 .}\\\hline B&\text {According to the Laspeyres price index, prices have risen by \( 135 \% \) from 2007 to 2010 . }\\\hline C&\text { According to the Laspeyres price index, prices have risen by \( 35 \% \) from 2010 to 2007 . }\\\hline D&\text {None of these choices are correct. }\\\hline \end{array}$

---

Definitions:

Ingroup-Outgroup Processes

The social dynamics and psychological processes involved in categorizing others as belonging to the same group (ingroup) or a different group (outgroup).

Discontinuity Effect

Refers to the observation that groups often exhibit more extreme behavior, and have a greater frequency of conflict and competition, compared to individuals acting alone.

Unfriendly

Characterized by a lack of friendliness or warmth; often describes behavior that is cold, distant, or hostile.

Embarrassed

A feeling of discomfort or self-consciousness caused by a perceived mistake or inadequacy in front of others.