Which of the Following Statements Is True About the Comparison

question 74

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 Paache 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:

Quebec

A province in Canada known for its unique French heritage, culture, and language within the predominantly English-speaking country.

Buffer

Buffer is a protective barrier or cushioning mechanism that mitigates the negative impact of environmental changes or stressors, often used in the context of stress management.

Stress

A psychological and physical response to perceived challenges or threats, which can affect an individual's health, well-being, and performance.

Recession

A period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.