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Consider the following statements and identify the right ones.
i. For measuring overall inflation in the economy, CPI is used
ii. WPI was first published in 1942 for 23 commodities
i. For measuring overall inflation in the economy, CPI is used
ii. WPI was first published in 1942 for 23 commodities
- a)i only
- b)ii only
- c)both
- d)none
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Consider the following statements and identify the right ones.i. For m...
For measuring overall inflation in the economy, WPI is used. WPI was first published in 1942 for 23 commodities.
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Consider the following statements and identify the right ones.i. For m...
Introduction:
Inflation is a measure of the overall increase in prices of goods and services in an economy over a period of time. It is an important economic indicator that helps policymakers and analysts understand the state of the economy and make informed decisions. There are different indices used to measure inflation, such as the Consumer Price Index (CPI) and the Wholesale Price Index (WPI).
Statement Analysis:
i. For measuring overall inflation in the economy, CPI is used:
The Consumer Price Index (CPI) is indeed used to measure overall inflation in the economy. It measures the average change in prices of a basket of goods and services consumed by households. The CPI takes into account the prices of various items, including food, housing, transportation, medical care, and education. By tracking the changes in these prices over time, the CPI provides an estimate of the general price level and inflation rate.
ii. WPI was first published in 1942 for 23 commodities:
The Wholesale Price Index (WPI) is a measure of the average changes in the prices of goods at the wholesale level. It provides an indication of price movements in the primary stages of production and distribution. However, the statement that WPI was first published in 1942 for 23 commodities is incorrect. The WPI was first published in India in 1902 for 10 selected commodities. Over the years, the coverage of the WPI has been expanded to include a wider range of commodities.
Conclusion:
Based on the analysis, statement i is correct, as CPI is indeed used to measure overall inflation in the economy. However, statement ii is incorrect, as the WPI was first published in India in 1902 for 10 selected commodities, not in 1942 for 23 commodities. Therefore, the correct answer is option B, which states that only statement ii is correct.
Inflation is a measure of the overall increase in prices of goods and services in an economy over a period of time. It is an important economic indicator that helps policymakers and analysts understand the state of the economy and make informed decisions. There are different indices used to measure inflation, such as the Consumer Price Index (CPI) and the Wholesale Price Index (WPI).
Statement Analysis:
i. For measuring overall inflation in the economy, CPI is used:
The Consumer Price Index (CPI) is indeed used to measure overall inflation in the economy. It measures the average change in prices of a basket of goods and services consumed by households. The CPI takes into account the prices of various items, including food, housing, transportation, medical care, and education. By tracking the changes in these prices over time, the CPI provides an estimate of the general price level and inflation rate.
ii. WPI was first published in 1942 for 23 commodities:
The Wholesale Price Index (WPI) is a measure of the average changes in the prices of goods at the wholesale level. It provides an indication of price movements in the primary stages of production and distribution. However, the statement that WPI was first published in 1942 for 23 commodities is incorrect. The WPI was first published in India in 1902 for 10 selected commodities. Over the years, the coverage of the WPI has been expanded to include a wider range of commodities.
Conclusion:
Based on the analysis, statement i is correct, as CPI is indeed used to measure overall inflation in the economy. However, statement ii is incorrect, as the WPI was first published in India in 1902 for 10 selected commodities, not in 1942 for 23 commodities. Therefore, the correct answer is option B, which states that only statement ii is correct.
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Consider the following statements and identify the right ones.i. For measuring overall inflation in the economy, CPI is usedii. WPI was first published in 1942 for 23 commoditiesa)i onlyb)ii onlyc)bothd)noneCorrect answer is option 'B'. Can you explain this answer?
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Consider the following statements and identify the right ones.i. For measuring overall inflation in the economy, CPI is usedii. WPI was first published in 1942 for 23 commoditiesa)i onlyb)ii onlyc)bothd)noneCorrect answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements and identify the right ones.i. For measuring overall inflation in the economy, CPI is usedii. WPI was first published in 1942 for 23 commoditiesa)i onlyb)ii onlyc)bothd)noneCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements and identify the right ones.i. For measuring overall inflation in the economy, CPI is usedii. WPI was first published in 1942 for 23 commoditiesa)i onlyb)ii onlyc)bothd)noneCorrect answer is option 'B'. Can you explain this answer?.
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