MP Board · Class 11 · Economics · Index NumbersWhich index number uses base year quantities as weights?
Step-by-Step Solution
Laspeyres' index number uses base year quantities (q0) as weights for calculating the weighted average of prices.
Detailed Options Breakdown
Option : Paasche's index
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Index Numbers.
Option 1: Laspeyres' index (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Fisher's index
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Index Numbers.
Option 3: Marshall-Edgeworth index
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Index Numbers.
💡 Study Guide: This question tests core syllabus concepts from Index Numbers. For formulas, key summaries, and mock exam reference guides, read the full Index Numbers Revision Notes.