Which index reveals the extra expenses incurred by an individual?

Consumer price index

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Wholesale price index

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Food price index

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Price index

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Solution

The correct option is A Consumer price index
The CPI reveals the extra expenses that are incurred by an individual as it is calculated by using retail items that we as consumers buy. Based on the index, the government can revise the wage rate of manual labourers and provide compensation to non-manual labourers if the CPI is higher as compared to other years.

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___ expenses are the additional expenses incurred by a buyer for an item over and above its cost of purchase.

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