Question

Any year can be taken as a base year.
A) True
B) False

Answer 1

Hint:
Here we will use the basic theory of the base year of economics. We will use the theory of keeping a year which is used as a reference year for the analysis or for the construction of an index. By this, we can state whether the given statement is true or false.

Complete step by step solution:
We know that the base year is the year which is used for the reference purpose for the construction of an index. This base year is generally used for comparing the data and prediction of the data.
It is generally used for the inter years comparison of the economy and other parameters which are used to conclude the development of a country. It also helps a country to predict its purchasing power.
As in the economics of India, we take the year 2011-12 as the base year as of now. But the government is planning to change the base year as 2017-18.
So, the base year can be any year that is used for the comparison in economics.
By this, we can conclude that it is true that any year can be taken as a base year.

So, option A is the correct option.

Note:
Here we have to note that the base year cannot be the year from the future or the current year. It must be the year from the past years. This concept of the base year is generally used for comparing the increased price of the items or products and predicts the upcoming prices of the product. The base year is used for a lot of purposes in economics. This base year also helps us determine the development of a country by comparing the inflation of the economy.