Which of the Following Statements Is True About the Comparison

Multiple Choice

Which of the following statements is true about the comparison between the Laspeyres and Paasche indices?

A) The Laspeyres index is more expensive to compute than the Paasche index.
B) The data requirements are more stringent for the Laspeyres index than for the Paache index.
C) Unlike the Laspeyres index,the Paasche index incorporates current expenditure patterns of consumers.
D) Unlike the Paasche index,the Laspeyres index requires that the weights be updated each year and the index numbers be recomputed for all of the previous years.