A value index is calculated using which combination of values?
Correct answer: C. Current prices and current quantities
- A. Current prices and base quantities
- B. Base prices and current quantities
- C. Current prices and current quantities
- D. Base prices and base quantities
Explanation
A value index compares total current-period value with total base-period value, so each value uses the prices and quantities of its own period. Its formula is Σp1q1 ÷ Σp0q0 × 100.
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