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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
Solution
In most of the weighted index numbers, the weight pertains to the current year.
Explanation:
In the Weighted Method of calculating index numbers, different goods are accorded weights according to the quantity brought. Laspeyre’s method uses base year’s quantities as weights, Paasche’s method uses current year’s quantities as weights and Fisher's method uses both base year as well as current year’s quantities as the base.
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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.
