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

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that aims to bring transparency, accountability, and efficiency to international financial markets.

Par Value

A nominal value assigned to share of stock in the charter of a corporation, often used in the calculation of capital accounts.