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Consider the following statements regarding the Consumer Price Index (CPI):
1. It measures the change in prices paid by consumers for goods and services both.
2. It is measured by the Ministry of Statistics and Programme Implementation with base year 2012.
3. The weightage of food and beverages in the CPI is close to 50%.
How many of the statements given above 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 the Consumer Price Index (...
- Consumer Price Indices (CPI) measures change over time in the general level of prices of goods and services that households acquire for the purpose of consumption. Hence statement 1 is correct.
- In India, CPI measured by the Ministry of Statistics and Programme Implementation with Base Year 2012. In India, there are four consumer price index numbers, which are calculated, and these are as follows:
- CPI for Industrial Workers (IW)
- CPI for Rural Labourers (RL) and
- CPI for Urban Non-Manual Employees (UNME). Hence statement 2 is correct.
- While the Ministry of Statistics and Program Implementation collects CPI (UNME) data and compiles it, the remaining three are collected by the Labour Bureau in the Ministry of Labour.
- Inflation is measured using CPI. The percentage change in this index over a period of time gives the amount of inflation over that specific period, i.e. the increase in prices of a representative basket of goods consumed.
- CPI is calculated for a fixed list of items including food, housing, apparel, transportation, electronics, medical care, education, etc. The weightage of food and beverages in the CPI is close to 50%. Hence statement 3 is correct.
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Consider the following statements regarding the Consumer Price Index (...
Explanation:
Firstly, let's analyze each statement:
Statement 1:
- The statement is correct. The Consumer Price Index (CPI) measures the change in prices paid by consumers for goods and services, reflecting the inflation rate.
Statement 2:
- This statement is incorrect. The CPI in India is calculated by the Central Statistics Office (CSO) under the Ministry of Statistics and Programme Implementation, with the base year currently set at 2012.
Statement 3:
- This statement is correct. Food and beverages do hold significant weightage in the CPI basket, contributing close to 50% of the index. This is because they are essential items in the consumer's basket and have a direct impact on their expenses.
Therefore, out of the three statements provided, only statement 1 and statement 3 are correct. Statement 2 is incorrect as the CPI is calculated by the CSO, not the Ministry of Statistics and Programme Implementation.
Firstly, let's analyze each statement:
Statement 1:
- The statement is correct. The Consumer Price Index (CPI) measures the change in prices paid by consumers for goods and services, reflecting the inflation rate.
Statement 2:
- This statement is incorrect. The CPI in India is calculated by the Central Statistics Office (CSO) under the Ministry of Statistics and Programme Implementation, with the base year currently set at 2012.
Statement 3:
- This statement is correct. Food and beverages do hold significant weightage in the CPI basket, contributing close to 50% of the index. This is because they are essential items in the consumer's basket and have a direct impact on their expenses.
Therefore, out of the three statements provided, only statement 1 and statement 3 are correct. Statement 2 is incorrect as the CPI is calculated by the CSO, not the Ministry of Statistics and Programme Implementation.
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Consider the following statements regarding the Consumer Price Index (CPI):1. It measures the change in prices paid by consumers for goods and services both.2. It is measured by the Ministry of Statistics and Programme Implementation with base year 2012.3. The weightage of food and beverages in the CPI is close to 50%.How many of the statements given above 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 the Consumer Price Index (CPI):1. It measures the change in prices paid by consumers for goods and services both.2. It is measured by the Ministry of Statistics and Programme Implementation with base year 2012.3. The weightage of food and beverages in the CPI is close to 50%.How many of the statements given above 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 the Consumer Price Index (CPI):1. It measures the change in prices paid by consumers for goods and services both.2. It is measured by the Ministry of Statistics and Programme Implementation with base year 2012.3. The weightage of food and beverages in the CPI is close to 50%.How many of the statements given above 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 the Consumer Price Index (CPI):1. It measures the change in prices paid by consumers for goods and services both.2. It is measured by the Ministry of Statistics and Programme Implementation with base year 2012.3. The weightage of food and beverages in the CPI is close to 50%.How many of the statements given above are correct?a)Only oneb)Only twoc)All threed)NoneCorrect answer is option 'C'. Can you explain this answer?.
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