UPSC Exam > UPSC Questions > Consider the following statements regarding W...
Start Learning for Free
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?
| FREE This question is part of | Download PDF Attempt this Test |
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.
Free Test
FREE
| Start Free Test |
Community Answer
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.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
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?
Question Description
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?.
Solutions 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? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of 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? defined & explained in the simplest way possible. Besides giving the explanation of
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?, a detailed solution 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? has been provided alongside types of 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? theory, EduRev gives you an
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.
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup