Question

Q. With reference to the Wholesale Price Index (WPI), which of the following statements is/are correct?

Select the correct answer using the code given below:

• A.
  1 and 2 only
• B.
  2 and 3 only
• C.
  1 and 3 only
• D.
  1, 2 and 3

Answer 1

The correct option is B

2 and 3 only
Explanation:

Statement 1 is incorrect: Prices used for the compilation of the index does not include indirect taxes to eliminate the impact of fiscal policy.

Statement 2 is correct: It is purely a commodity based index and it does not include services.

Statement 3 is correct: Wholesale Price Index (WPI) and Index of Industrial Production (IIP) both are calculated by the same authority i.e. CSO.