In a Laspeyres price index, the weights are: MCQ with Answer and Explanation

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In a Laspeyres price index, the weights are:

A. Current period quantities

B. Base period prices

C. Base period quantities

D. Current period prices

Answer: Option C

Solution (By JKSSB Mock Tests)

Laspeyres index weights items by base period quantities, keeping the basket constant.

This question belongs to: Accountancy and Statistics Statistics

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Question #1

Which formula uses the arithmetic mean of base and current year quantities as weights?

A. Laspeyres

B. Dorbish-Bowley

C. Paasche

D. Marshall-Edgeworth

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Correct Answer: Option D

Explanation:
Marshall-Edgeworth uses the sum (or arithmetic average) of quantities from both years: w = (q0 + q1).

This question belongs to: Accountancy and Statistics Statistics

Question #2

Cost of Living Index is primarily used for:

A. Measuring industrial production

B. Calculating GDP

C. Calculating trade balance

D. Adjusting dearness allowance

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Correct Answer: Option D

Explanation:
It is used to adjust salaries and wages to maintain purchasing power.

This question belongs to: Accountancy and Statistics Statistics

Question #3

Life expectancy at birth is computed using:

A. Life table

B. Birth registration

C. Census only

D. Sample survey

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Correct Answer: Option A

Explanation:
Life table synthesizes age-specific mortality rates to compute life expectancy.

This question belongs to: Accountancy and Statistics Statistics

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