In a Laspeyres Price Index What Value Is Used for the Weights

question 10

Multiple Choice

In a Laspeyres price index what value is used for the weights of components?

• A) Base time period prices
• B) Base time period index values
• C) Base time period prices squared
• D) Base time period quantities

---

Definitions:

Expected Rate

The return that an investor anticipates or estimates will be achieved over a certain period on an investment.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.

Equilibrium

Equilibrium in economics is the point where supply equals demand for a product, resulting in stable prices and volume of sales.

Efficient Portfolio

Provide the highest expected return for any degree of risk. The efficient portfolio is that which provides the lowest degree of risk for any expected return.