Read the passage carefully and answer the questions based on the passage:

GDP figures and other macroeconomic variables

Suppose a country only produces rice. In the year 2020, it produced 100 Kg of rice. The price was Rs 10 per kg of rice and the GDP at the current price was Rs 1,000. In 2021, the same country will produce 110 Kg of rice at a price of Rs 15 per kg.

What is the base year?

2020

The correct answer is Option (2) → 2020

A base year is the year against which other years' data is compared, typically with constant prices from that year.

In the given passage, the year 2020 is used as the reference year with the original production and price levels (100 kg at Rs 10 per kg), and the GDP at current price is calculated for that year as Rs 1,000. This implies that 2020 is being used as the base year for comparing changes in price and quantity in 2021.