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Q.

Index number in the base period is always taken as


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a

200

b

50

c

1

d

100 

answer is D.

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Detailed Solution

Let P be the index number
Let ∑P1be the value of commodity in current period
Let ∑P0 be the value of commodity in base period
P = ∑P1∑P0 × 100
For calculating the Index number in base period, base period = current period
∑P1= ∑P0
P = 1 × 100 = 100
Index number in the base period is always taken as 100.
So, the correct answer is “Option 4”.
 
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