The Formula for Computing a Basic Price Index Is

question 64

Multiple Choice

The formula for computing a basic price index is

• A) (cost of market basket today/cost of market basket in base year) × 100.
• B) (cost of market basket in base year/100) × cost of market basket today.
• C) (cost of market basket in base year/cost of market basket today) × 100.
• D) (100/cost of market basket in base year) + cost of market basket today.

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Definitions:

Constraints

Limitations or restrictions in a process, system, or project that can impact performance, timing, or results.

Locomotive Works

Industrial facilities specialized in the construction and maintenance of locomotives and other railway rolling stock.

Labour Hours

measures the amount of work performed by employees, typically expressed in hours, and is often used to track productivity or allocate labor costs.

Milling Machine

A machine tool used to machine solid materials, typically by cutting, boring, drilling, or threading.