i. Etienne Laspeyres developed a method in the latter part of the 18th 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 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) All statements are false

Question

Quizplus · Accepted Answer

Laspeyres developed his index method in the 19th century, not the 18th. The method uses base-period quantities as weights, which aligns with statement (ii). However, the Laspeyres method does not account for changes in buying patterns over time, making statement (iii) incorrect.

I Etienne Laspeyres Developed a Method in the Latter Part