A weighted aggregate price index where the weight for each item is its base-period quantity is known as the
A) Laspeyres index.
B) Paasche index.
C) Weight index.
D) Quantity index.

Question

Quizplus · Accepted Answer

The definition described matches the formula for a Laspeyres index, which uses the base-period quantity as the weight. The Paasche index, in contrast, uses current-period quantities as weights. The other answer choices are not specific types of price indices.

A Weighted Aggregate Price Index Where the Weight for Each