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Consider the following statements regarding Wholesale inflation.
- Wholesale inflation does not capture price movements in non-commodity producing sectors like services, which constitute close to two-thirds of economic activity in India.
- Wholesale inflation does not generally reflect price movements in all wholesale markets.
- Wholesale Price Index (WPI) often reflect large external shocks and as such, the wholesale inflation rate is often subject to large revisions.
How many of the above statements are correct?
- a)Only one
- b)Only two
- c)All three
- d)None
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Consider the following statements regarding Wholesale inflation. Whole...
Wholesale inflation refers to the rate at which the wholesale prices of goods and services change over a given period of time. It is measured using the Wholesale Price Index (WPI), which tracks the average price movement of goods in the wholesale market.
Statement 1: Wholesale inflation does not capture price movements in non-commodity producing sectors like services, which constitute close to two-thirds of economic activity in India.
This statement is correct. The WPI primarily reflects price movements in commodity-producing sectors such as manufacturing, mining, and agriculture. It does not adequately capture price movements in non-commodity producing sectors like services, which play a significant role in the Indian economy. Since services constitute close to two-thirds of the economic activity in India, the WPI may not provide a comprehensive picture of inflation in the economy.
Statement 2: Wholesale inflation does not generally reflect price movements in all wholesale markets.
This statement is incorrect. The WPI is designed to capture price movements in various wholesale markets. It includes a basket of goods from different sectors, and the prices of these goods are tracked to calculate the WPI. While it may not capture price movements in all wholesale markets, it does aim to provide a representative measure of inflation in the wholesale sector.
Statement 3: Wholesale Price Index (WPI) often reflects large external shocks and as such, the wholesale inflation rate is often subject to large revisions.
This statement is correct. The WPI is influenced by various factors, including global commodity prices, exchange rate fluctuations, and government policies. These factors can lead to large external shocks that impact the WPI. As a result, the wholesale inflation rate is often subject to large revisions as new data becomes available or changes occur in the external environment.
In conclusion, both statement 1 and statement 3 are correct. Statement 2 is incorrect. Therefore, the correct answer is option 'C' - all three statements.
Statement 1: Wholesale inflation does not capture price movements in non-commodity producing sectors like services, which constitute close to two-thirds of economic activity in India.
This statement is correct. The WPI primarily reflects price movements in commodity-producing sectors such as manufacturing, mining, and agriculture. It does not adequately capture price movements in non-commodity producing sectors like services, which play a significant role in the Indian economy. Since services constitute close to two-thirds of the economic activity in India, the WPI may not provide a comprehensive picture of inflation in the economy.
Statement 2: Wholesale inflation does not generally reflect price movements in all wholesale markets.
This statement is incorrect. The WPI is designed to capture price movements in various wholesale markets. It includes a basket of goods from different sectors, and the prices of these goods are tracked to calculate the WPI. While it may not capture price movements in all wholesale markets, it does aim to provide a representative measure of inflation in the wholesale sector.
Statement 3: Wholesale Price Index (WPI) often reflects large external shocks and as such, the wholesale inflation rate is often subject to large revisions.
This statement is correct. The WPI is influenced by various factors, including global commodity prices, exchange rate fluctuations, and government policies. These factors can lead to large external shocks that impact the WPI. As a result, the wholesale inflation rate is often subject to large revisions as new data becomes available or changes occur in the external environment.
In conclusion, both statement 1 and statement 3 are correct. Statement 2 is incorrect. Therefore, the correct answer is option 'C' - all three statements.
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Consider the following statements regarding Wholesale inflation. Whole...
- Wholesale inflation “does not capture price movements in non-commodity producing sectors like services, which constitute close to two-thirds of economic activity in India”.
- Wholesale inflation “does not generally reflect price movements in all wholesale markets”. This happens because price quotations for some important commodities such as milk, LPG etc. are taken from retail markets.
- Movements in WPI often reflect large external shocks and as such, the wholesale inflation rate is often subject to large revisions.
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Consider the following statements regarding Wholesale inflation. Wholesale inflation does not capture price movements in non-commodity producing sectors like services, which constitute close to two-thirds of economic activity in India. Wholesale inflation does not generally reflect price movements in all wholesale markets. Wholesale Price Index (WPI) often reflect large external shocks and as such, the wholesale inflation rate is often subject to large revisions.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer?
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Consider the following statements regarding Wholesale inflation. Wholesale inflation does not capture price movements in non-commodity producing sectors like services, which constitute close to two-thirds of economic activity in India. Wholesale inflation does not generally reflect price movements in all wholesale markets. Wholesale Price Index (WPI) often reflect large external shocks and as such, the wholesale inflation rate is often subject to large revisions.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. 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 regarding Wholesale inflation. Wholesale inflation does not capture price movements in non-commodity producing sectors like services, which constitute close to two-thirds of economic activity in India. Wholesale inflation does not generally reflect price movements in all wholesale markets. Wholesale Price Index (WPI) often reflect large external shocks and as such, the wholesale inflation rate is often subject to large revisions.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. 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 regarding Wholesale inflation. Wholesale inflation does not capture price movements in non-commodity producing sectors like services, which constitute close to two-thirds of economic activity in India. Wholesale inflation does not generally reflect price movements in all wholesale markets. Wholesale Price Index (WPI) often reflect large external shocks and as such, the wholesale inflation rate is often subject to large revisions.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer?.
Consider the following statements regarding Wholesale inflation. Wholesale inflation does not capture price movements in non-commodity producing sectors like services, which constitute close to two-thirds of economic activity in India. Wholesale inflation does not generally reflect price movements in all wholesale markets. Wholesale Price Index (WPI) often reflect large external shocks and as such, the wholesale inflation rate is often subject to large revisions.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. 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 regarding Wholesale inflation. Wholesale inflation does not capture price movements in non-commodity producing sectors like services, which constitute close to two-thirds of economic activity in India. Wholesale inflation does not generally reflect price movements in all wholesale markets. Wholesale Price Index (WPI) often reflect large external shocks and as such, the wholesale inflation rate is often subject to large revisions.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. 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 regarding Wholesale inflation. Wholesale inflation does not capture price movements in non-commodity producing sectors like services, which constitute close to two-thirds of economic activity in India. Wholesale inflation does not generally reflect price movements in all wholesale markets. Wholesale Price Index (WPI) often reflect large external shocks and as such, the wholesale inflation rate is often subject to large revisions.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer?.
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ample number of questions to practice Consider the following statements regarding Wholesale inflation. Wholesale inflation does not capture price movements in non-commodity producing sectors like services, which constitute close to two-thirds of economic activity in India. Wholesale inflation does not generally reflect price movements in all wholesale markets. Wholesale Price Index (WPI) often reflect large external shocks and as such, the wholesale inflation rate is often subject to large revisions.How many of the above statements are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.
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