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:

Ex Situ Conservation

The strategy of conserving biological diversity by preserving genetic material or entire organisms outside their natural habitats.

Ozone Molecules

A molecule made up of three oxygen atoms, playing a crucial role in absorbing the sun's ultraviolet radiation in the stratosphere, thus protecting life on Earth.

Stratosphere

The layer of the atmosphere between the troposphere and the mesosphere. It contains a thin ozone layer that protects life by filtering out much of the sun’s ultraviolet radiation.

UV Radiation

Ultraviolet radiation, a type of energy emitted by the sun and artificial sources, which is invisible to the human eye and can cause skin damage.