Which of the Following Statements Is True About the Comparison

question 88

Multiple Choice

Which of the following statements is true about the comparison between the Laspeyres and Paasche indices?

• A) The Laspeyres index is more expensive to compute than the Paasche index.
• B) The data requirements are more stringent for the Laspeyres index than for the Paasche index.
• C) Unlike the Laspeyres index, the Paasche index incorporates current expenditure patterns of consumers.
• D) Unlike the Paasche index, the Laspeyres index requires that the weights be updated each year and the index numbers be recomputed for all of the previous years.

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Definitions:

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Coupon

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Marginal Analysis

Marginal Analysis is an assessment method used to evaluate the impact of a small change in production levels or economic activity, focusing on the cost and benefit of making that change.

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