Choose the correct statements from the following.
(A) Capital goods are those goods which are bought not for meeting immediate need of the consumer but for producing other goods.
(B) Households refer to the families or individuals who supply factors of production to the firms and which buy the goods and services from the firms
(C) Consumer Price Index is the index of prices of a given basket of commodity which are bought by the representative consumer
(D) Wholesale Price Index refers to the percentage change in the weighted average price level.
Choose the correct statements from the following.
(A) Capital goods are those goods which are bought not for meeting immediate need of the consumer but for producing other goods.
(B) Households refer to the families or individuals who supply factors of production to the firms and which buy the goods and services from the firms
(C) Consumer Price Index is the index of prices of a given basket of commodity which are bought by the representative consumer
(D) Wholesale Price Index refers to the percentage change in the weighted average price level.
Solution
(A) is correct because capital goods are used for producing other goods and are not meant for immediate consumption.
(B) is correct as households supply factors of production to firms and use the income earned to purchase goods and services.
(C) is correct since the Consumer Price Index measures the price of a fixed basket of goods and services consumed by a representative consumer.
(D) is also correct as, in standard usage, the Wholesale Price Index is used to measure the percentage change in the weighted average price level at the wholesale stage, thereby indicating inflation.
Therefore, all four statements are correct.
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