In Paasche's quantity index, quantities of the current period are weighted by:
Correct answer: B. Current-period prices
- A. Base-period prices
- B. Current-period prices
- C. Average-period prices
- D. Base-period quantities
Explanation
Paasche's quantity index uses current-period prices as weights when comparing quantities. Base-period prices are used in Laspeyres' quantity index, which is the common trap.
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