(i) Constructing a Paasche index is generally more costly than a Laspeyre index
x
(ii) With a Laspeyre index, comparisons can only be drawn directly between the current year and the base year
x
A Paasche index requires quantities to be ascertained each year and so constructing a Paasche index may therefore be costly. A Laspeyre index only requires them for the base year so (i) is true. The denominator of a Laspeyre index is fixed and therefore the Laspeyre index numbers for several different years can be directly compared. (ii) is therefore false.
