Question

An ideal index number would be one which takes into account as weights ______.

• A. Prices of both base and current year
• B. Quantities of both base and current year
• C. Prices and quantities of both base and current year
• D. Prices of current year

Answer 1

The correct option is C

Prices and quantities of both base and current year

Prices and quantities of both base and current year when taken into consideration give a more consistent result as compared to other indexes deploying either only prices or quantities.