Macro

National Income

Easy

Consumer Price Index (CPI) is measured by_______

Measuring Wholesale price of commodities.

Basket of commodities bought by representative consumers.

Measuring Foodgrain Prices in economy.

Measuring Consumables Prices at a particular time point.

✅ Correct Option: 2

Option 1 -> Wholesale prices relate to WPI (Wholesale Price Index), not CPI.

Option 2 -> CPI tracks price changes of a fixed basket representing typical household consumption.

Option 3 -> CPI includes multiple categories, not just foodgrains.

Option 4 -> While it measures consumables, this definition lacks the key concept of a representative basket.

Hence, Option 2: Basket of commodities bought by representative consumers -> CPI is calculated by monitoring the price changes of a standardized basket of goods and services that represents the average consumption pattern of households. This basket includes various categories such as food and beverages, housing, clothing, transportation, medical care, recreation, education, and communication. The weights assigned to each category reflect their relative importance in consumer spending. By tracking how the total cost of this fixed basket changes over time, CPI measures inflation and the purchasing power of money from a consumer's perspective -> correct

2025: 28 May Shift 1

This is the index of prices of a given basket of commodities which are bought by the representative customer. Two years under consideration are kept – one is the base year, the other is the current year. First, the cost of purchase of a given basket of commodities in the base year is calculated. Then the cost of purchase of the same basket in the current year is calculated. Then we express the latter as a percentage of the former.

This index is called :

Customer Index Pricing
Consumer Index Pricing
Consumer Price Index
Customer Price Index

2025: 22 May Shift 1

What is GDP deflator?

2025: 15 May Shift 1

Identify the correct statement from the following.

2025: 2 June Shift 1

Identify the correct sequence with regard to externalities:

(A) Leads to negative externalities.

(B) Production by the refining industry pollutes nearby rivers.

(D) Dependent may loose their livelihood.

Choose the correct answer from the options given below:

2025: 15 May Shift 1

Choose the correct operation which will be adopted to arrive at GDP $_{MP}$ from NNP $_{MP}$ .

2026: 6 June Shift 1

The value of GDP at the current prevailing prices is defined as.

Consumer Price Index (CPI) is measured by_______

Solution

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