MCQEconomics

NCERT · Class 11 · Economics · Index NumbersWhich formula uses current year quantities as weights?

Step-by-Step Solution

Paasche's index number uses current year quantities (q1) as weights.

Detailed Options Breakdown
Option : Laspeyres' index

Incorrect choice. This distractor represents a common misunderstanding of the core principles of Index Numbers.

Option 1: Paasche's index (Correct Answer)

Correct choice. Refer to the step-by-step verified solution guidelines above for details.

Option 2: Simple average index

Incorrect choice. This distractor represents a common misunderstanding of the core principles of Index Numbers.

Option 3: Bowley's 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.
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