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Question
In most of the weighted index numbers, the weight pertains to ______.
Options
base year
current year
both base and current year
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Solution
In most of the weighted index numbers, the weight pertains to the current year.
Explanation:
Most weighted index numbers, like Laspeyres’ Index, use base year quantities as weights to measure changes over time. Using base year weights helps in comparing how prices or quantities have changed relative to a fixed reference point. While Paasche uses the current year and Fisher uses both, the most common practice is to take base-year weights.
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RELATED QUESTIONS
The impact of change in the price of a commodity with little weight in the index will be ______
What is the difference between a price index and a quantity index?
The monthly expenditure (Rs.) of a family on some important items and the Goods and Services Tax (GST) rates applicable to these items is as follows:
| Item | Monthly Expense (Rs) | GST Rate % |
| Cereals | 1500 | 0 |
| Eggs | 250 | 0 |
| Fish, Meat | 250 | 0 |
| Medicines | 50 | 5 |
| Biogas | 50 | 5 |
| Transport | 100 | 5 |
| Butter | 50 | 12 |
| Babool | 10 | 12 |
| Tomato Ketchup | 40 | 12 |
| Biscuits | 75 | 18 |
| Cakes, Pastries | 25 | 18 |
| Branded Garments | 100 | 18 |
| Vacuum Cleaner, Car | 1000 | 28 |
Calculate the average tax rate as far as this family is concerned.
