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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
- a)i only
- b)ii only
- c)both
- d)none
Correct answer is option 'B'. Can you explain this answer?
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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...
Explanation:
CPI (Consumer Price Index):
- CPI measures the overall inflation in the economy.
- It is calculated by taking the price changes of a basket of goods and services consumed by households.
- CPI reflects the changes in prices of goods that consumers purchase for day-to-day living.
WPI (Wholesale Price Index):
- WPI measures the average changes in prices of goods traded in bulk or wholesale markets.
- It is calculated by taking the price changes of a basket of goods traded in bulk by producers and wholesalers.
- WPI reflects the changes in prices of goods that producers purchase for production.
Correct Statement:
- Statement ii is correct. WPI was first published in 1942 for 23 commodities.
- Statement i is incorrect. CPI is used to measure inflation at the consumer level, while WPI is used to measure inflation at the producer level.
Therefore, option B is the correct answer.
CPI (Consumer Price Index):
- CPI measures the overall inflation in the economy.
- It is calculated by taking the price changes of a basket of goods and services consumed by households.
- CPI reflects the changes in prices of goods that consumers purchase for day-to-day living.
WPI (Wholesale Price Index):
- WPI measures the average changes in prices of goods traded in bulk or wholesale markets.
- It is calculated by taking the price changes of a basket of goods traded in bulk by producers and wholesalers.
- WPI reflects the changes in prices of goods that producers purchase for production.
Correct Statement:
- Statement ii is correct. WPI was first published in 1942 for 23 commodities.
- Statement i is incorrect. CPI is used to measure inflation at the consumer level, while WPI is used to measure inflation at the producer level.
Therefore, option B is the correct answer.
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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 commoditiesa)i onlyb)ii onlyc)bothd)noneCorrect answer is option 'B'. Can you explain this answer?
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