Which of the Following Statements Is True About Price-Weighted Indexes

question 44

Multiple Choice

Which of the following statements is true about price-weighted indexes?
I. The Laspeyres index uses base-period quantities as weights.
II. The Paasche index tends to underweight goods whose prices have gone down.
III. The Paasche index uses current-period quantities as weights.

• A)I only
• B)II only
• C)I and III
• D)II and III

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Definitions:

Defensive Statements

Refers to responses aimed at protecting oneself from criticism, blame, or challenging questions often perceived as justifications or excuses.

Denies Wrongdoing

A statement by an individual or organization rejecting accusations or implications of illegal or unethical actions.

Contingency Approach

A management theory that suggests the best way to organize or lead is dependent on the specific circumstances or context.

Changing Times

A term referring to the dynamic nature of societal, economic, technological, and cultural shifts that impact all aspects of life and business.