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What is the primary difference between the Wholesale Price Index (WPI) and the Producer Price Index (PPI)?
- a)WPI measures retail prices, while PPI measures wholesale prices.
- b)WPI measures inflation of goods only, while PPI measures inflation of goods and services.
- c)WPI is used for calculating GDP, while PPI is used for determining monetary policy changes.
- d)WPI is based on a base year of 2011-12, while PPI has a base year of 2017.
Correct answer is option '
OPTIONB
'. Can you explain this answer?
Verified Answer
What is the primary difference between the Wholesale Price Index (WPI...
The primary difference between the Wholesale Price Index (WPI) and the Producer Price Index (PPI) lies in the scope of what they measure. While the WPI primarily tracks the inflation of goods only, focusing on wholesale prices, the PPI extends its measurement to include both goods and services, providing a broader perspective on inflation within an economy. This distinction is crucial as it helps policymakers and economists assess different aspects of price movements at various stages of production, offering a more comprehensive view of economic dynamics.
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What is the primary difference between the Wholesale Price Index (WPI...
Primary Difference between Wholesale Price Index (WPI) and Producer Price Index (PPI)
Definition:
- The Wholesale Price Index (WPI) measures the average change in prices of goods sold in bulk by wholesalers.
- The Producer Price Index (PPI) measures the average change in prices received by producers for their goods and services.
Scope of Measurement:
- WPI primarily focuses on tracking inflation in goods only.
- PPI, on the other hand, covers inflation in both goods and services.
Usage:
- WPI is often used in macroeconomic analysis, including calculating GDP.
- PPI is more commonly used by policymakers to determine changes in monetary policy.
Base Year:
- WPI in India is based on a base year of 2011-12.
- PPI in India has a base year of 2017.
Therefore, the primary difference between WPI and PPI lies in their scope of measurement, usage, and base year. While WPI focuses on tracking inflation in goods, PPI covers both goods and services. WPI is used for calculating GDP, whereas PPI is more commonly used for determining monetary policy changes. Additionally, the base year for WPI is 2011-12, while PPI has a base year of 2017.
Definition:
- The Wholesale Price Index (WPI) measures the average change in prices of goods sold in bulk by wholesalers.
- The Producer Price Index (PPI) measures the average change in prices received by producers for their goods and services.
Scope of Measurement:
- WPI primarily focuses on tracking inflation in goods only.
- PPI, on the other hand, covers inflation in both goods and services.
Usage:
- WPI is often used in macroeconomic analysis, including calculating GDP.
- PPI is more commonly used by policymakers to determine changes in monetary policy.
Base Year:
- WPI in India is based on a base year of 2011-12.
- PPI in India has a base year of 2017.
Therefore, the primary difference between WPI and PPI lies in their scope of measurement, usage, and base year. While WPI focuses on tracking inflation in goods, PPI covers both goods and services. WPI is used for calculating GDP, whereas PPI is more commonly used for determining monetary policy changes. Additionally, the base year for WPI is 2011-12, while PPI has a base year of 2017.
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What is the primary difference between the Wholesale Price Index (WPI) and the Producer Price Index (PPI)?a)WPI measures retail prices, while PPI measures wholesale prices.b)WPI measures inflation of goods only, while PPI measures inflation of goods and services.c)WPI is used for calculating GDP, while PPI is used for determining monetary policy changes.d)WPI is based on a base year of 2011-12, while PPI has a base year of 2017.Correct answer is option 'OPTIONB'. Can you explain this answer?
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What is the primary difference between the Wholesale Price Index (WPI) and the Producer Price Index (PPI)?a)WPI measures retail prices, while PPI measures wholesale prices.b)WPI measures inflation of goods only, while PPI measures inflation of goods and services.c)WPI is used for calculating GDP, while PPI is used for determining monetary policy changes.d)WPI is based on a base year of 2011-12, while PPI has a base year of 2017.Correct answer is option 'OPTIONB'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about What is the primary difference between the Wholesale Price Index (WPI) and the Producer Price Index (PPI)?a)WPI measures retail prices, while PPI measures wholesale prices.b)WPI measures inflation of goods only, while PPI measures inflation of goods and services.c)WPI is used for calculating GDP, while PPI is used for determining monetary policy changes.d)WPI is based on a base year of 2011-12, while PPI has a base year of 2017.Correct answer is option 'OPTIONB'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the primary difference between the Wholesale Price Index (WPI) and the Producer Price Index (PPI)?a)WPI measures retail prices, while PPI measures wholesale prices.b)WPI measures inflation of goods only, while PPI measures inflation of goods and services.c)WPI is used for calculating GDP, while PPI is used for determining monetary policy changes.d)WPI is based on a base year of 2011-12, while PPI has a base year of 2017.Correct answer is option 'OPTIONB'. Can you explain this answer?.
What is the primary difference between the Wholesale Price Index (WPI) and the Producer Price Index (PPI)?a)WPI measures retail prices, while PPI measures wholesale prices.b)WPI measures inflation of goods only, while PPI measures inflation of goods and services.c)WPI is used for calculating GDP, while PPI is used for determining monetary policy changes.d)WPI is based on a base year of 2011-12, while PPI has a base year of 2017.Correct answer is option 'OPTIONB'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about What is the primary difference between the Wholesale Price Index (WPI) and the Producer Price Index (PPI)?a)WPI measures retail prices, while PPI measures wholesale prices.b)WPI measures inflation of goods only, while PPI measures inflation of goods and services.c)WPI is used for calculating GDP, while PPI is used for determining monetary policy changes.d)WPI is based on a base year of 2011-12, while PPI has a base year of 2017.Correct answer is option 'OPTIONB'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the primary difference between the Wholesale Price Index (WPI) and the Producer Price Index (PPI)?a)WPI measures retail prices, while PPI measures wholesale prices.b)WPI measures inflation of goods only, while PPI measures inflation of goods and services.c)WPI is used for calculating GDP, while PPI is used for determining monetary policy changes.d)WPI is based on a base year of 2011-12, while PPI has a base year of 2017.Correct answer is option 'OPTIONB'. Can you explain this answer?.
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