I Etienne Laspeyres Developed a Method in the Latter Part

question 48

Multiple Choice

i. Etienne Laspeyres developed a method in the latter part of the 19^th century to determine a weighted index using base-period weights. ii. If we are constructing a weighted index of the price of food for 2000 using the Laspeyres' method and 1982-84 = 100, we use the amounts consumed in the base period, q₀, as weights.
iii. The Laspeyres' method allows for a meaningful comparison of prices over time; however, if does not reflect changes in buying patterns over time.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Refracted

Refracted refers to the bending of a wave, such as light or sound, as it passes through a medium, which changes its speed and direction.

Rounded

Pertaining to shapes or objects that have smooth curves or surfaces without sharp angles or edges.

Flattened

Made flat or flatter; lacking volume or prominence.

Crista Ampullaris

A sensory structure within the semicircular canals of the inner ear that detects head movements, aiding in balance and spatial orientation.