Bissoy.com
Doctors Medicines MCQs Q&A

Consider the following statements: a. The wholesale price index is a measure of inflation on an economy-wide scale. b. The consumer price index is the retail price average of a basket of goods and services directly consumed by the people. c. GDP deflators which distinguish between personal growth in income and price rise. Which of the statements given above is/are incorrect?

Consider the following statements: a. The wholesale price index is a measure of inflation on an economy-wide scale. b. The consumer price index is the retail price average of a basket of goods and services directly consumed by the people. c. GDP deflators which distinguish between personal growth in income and price rise. Which of the statements given above is/are incorrect? Correct Answer Only c

The correct answer is option c i.e Only c.

  • Wholesale price index (WPI):
    • It indicates the change in the general price level.
    • A wholesale price index (WPI) measures and tracks the changes in the price of goods before they reach consumers goods that are sold in bulk and traded between entities or businesses (rather than consumers).
    • Wholesale price indexes (WPIs) are one indicator of a country's level of inflation.
  • Consumer price index (CPI):
    • It is also known as the cost of living index measures the average change in retail prices.
    • The Consumer Price Index measures the average change in prices over time that consumers pay for a basket of goods and services.
  • Gross Domestic Product (GDP):
    • ​Gross domestic product (GDP) represents the total output of good and services within the boundary of a country.
    • The GDP deflator, also called implicit price deflator, is a measure of inflation. Hence statement 'c' is incorrect.
    • It is the ratio of the value of goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year.

Related Questions

Consider the following statements regarding the measurement of rate of inflation.
Statement I The rate of inflation is measured on the basis of price indices which are of two kinds-Wholesale Price Index (WPI) and Consumer Price Index (CPl).
Statement II A price index is a measure of the average level of prices.
Statement III Price index shows the exact price rise or fall of a single good.
The following sentences form a paragraph.They are numbered as P, Q, R and S. These four parts are not given in their proper order. Read the sentences and choose the alternative that arranges them in correct order. P. It is the ratio of the value of goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year. Q. The GDP deflator, also called implicit price deflator, is a measure of inflation. R. Since the deflator covers the entire range of goods and services produced in the economy — as against the limited commodity baskets for the wholesale or consumer price indices — it is seen as a more comprehensive measure of inflation. S. This ratio helps show the extent to which the increase in gross domestic product has happened on account of higher prices rather than increase in output.
Consider the following statements with respect to Consumer Price Index and Wholesale Price Index in India: 1. The WPI is calculated for only goods and CPI is calculated for both goods and services.  2. The WPI is published by the Office of the Economic Advisor in the Ministry of Commerce and Industry while the CPI is published by the Central Statistical Office. 3. The WPI is published on a weekly basis for primary articles and fuel and power and is published monthly for the rest of the items, whereas the CPI is released on a monthly basis. 4. The WPI measures inflation in the initial stages of the supply chain whereas the CPI measure inflation in the later stages of the supply chain. Which among the above given statements are correct?
A naughty boy Amrit watches a Sachin Tendulkar inning and acts according to number of runs he sees Sachin scoring. The details are:
1 run - place one orange in the basket
2 runs - place one mango in basket
3 runs - place a pear in the basket
4 runs - remove a pear and a mango from the basket
One fine day, at the start of the match, the basket is empty. The sequence of runs scored by Sachin in that inning are given as 11232411234232341121314. At the end of the above inning, how many more oranges were there compared to mangoes inside the basket ? (The Basket was empty initially).
Which of the following is correct about WPI (Wholesale Price Index) related to inflation? (A) It measures the wholesale prices on a weekly basis. (B) It focuses on both goods as well as services. (C) t measures the wholesale prices on a monthly basis. (D) It focuses only on goods, not on services.
There are three baskets filled with some balls. The ratio of the capacity of the first basket to the second basket is 2 : 3 while the ratio of capacity of the second basket to the third basket is 4 : 5. The difference of balls between the first basket and the third basket is 483. What is the number of average balls in all three baskets?
Consider the following statements: a. The average CPI inflation declined to 4.9% in 2015 – 16 from 5.9% in 2014 – 15. b. The average inflation based on the Wholesale Price Index declined to (-) 2.5% in 2015 – 16 from 2.0% in 2014 – 15. c. The average inflation was 2.9% during April – December 2016. Which of the statement/s given above is/are correct?
Consider the following statements about the GDP Deflator. 1. GDP deflator is the ratio of nominal GDP to real GDP. 2. GDP deflator indicates the change in the price level between the base year and the current year. 3. While calculating GDP deflator, the volume of production is considered as fixed. Which of statements given above is/are correct?
Consider the following statements: 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). 2. The WPI does not capture changes in the prices of services, which CPI does. 3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates. Which of the statements given above is/are correct?
Consider the following consume price indices. I. Consumer Price Index for Industrial Workers II. Consumer Price Index for Agricultural Labourers III. Consumer Price Index for Rural Labourers IV. Consumer Price Index for Urban Non-Manual Employees   Which of the above indices is/are compiled by Central Statistical Organization (CSO)?