GK Quiz on Wholesale Price Index (WPI) and Consumer Price Index (CPI)

Take the GK Quiz based on Wholesale Price Index and Consumer Price Index below. The questions have explanations listed below them for a better understanding.
GK Quiz on WPI and CPI
GK Quiz on WPI and CPI

Jagran Josh has come up with a set of multiple choice questions based on Wholesale Price Index and Consumer Price Index. The quiz would be specially helpful to those students preparing for various competitive exams. The Wholesale Price Index (WPI) and Consumer Price Index (CPI) are the widely used indexes for the calculation of inflation.

1. What is the present WPI (month of May 2021) of India?

(a) 9.0%

(b) 10.49%

(c) 12.94%

(d) 10.94%

Ans. c

Explanation: The annual rate of inflation, based on monthly WPI, was 12.94 per cent for the month of May, 2021

2. Which of these listed below has the highest weightage in Wholesale Price Index (WPI)?

(a) Manufactured Products

(b) Primary goods

(c) Fuel and Power

(d) All of the above 

Ans. a

Explanation: The weightage is as follows: Manufactured Products (64.20%), Primary Articles (22.60%) and Fuel & Power (13.10%).

3. Which among the following items are included in the Wholesale Price Index (WPI) basket?

(a) Goods

(b) Services 

(c) Both a and b

(d) None of these

Ans. a

Explanation: Wholesale Price Index includes only the goods. 

4. How many items are there in the Consumer Price Index’s (WPI) rural basket?

(a) 440


(c) 450

(d) 460


Explanation: CPI basket for rural includes 448 items in the list. 

5. Which of the following statements is true?

i) Weightage of food in CPI is higher than that in WPI

ii) WPI does not include changes in price of services

(a) Only i

(b) Only ii

(c) Both i and ii

(d) None of the above 

Ans. c

Explanation: The weightage of food in CPI is as high as 50% and in WPI is 39.06%. WPI inflation does not capture price changes but CPI does.  

6. Which index is used to calculate inflation in India?

(a) Wholesale Price Index

(b) GDP deflator

(c) Productive Price Index

(d) Commodity Price Index

Answer: a

Explanation: In India inflation is calculated by using Wholesale Price Index. WPI calculates the price paid by the manufacturers and wholesalers in the market.

7. Ramesh spends some rupees on flour, rice, tuition fee, etc., then which index will be used to calculate the average of this whole expenditure.

(a) Wholesale Price Index

(b) Productive Price Index

(c) Consumer Price Index

(d) Producer Price Index

Answer: c

Explanation: CPI calculates the average price paid by the consumer to the shopkeepers. The CPI measures the expenses like education, communication, transportation, recreation, apparel, foods and beverages, housing and medical care.

8. Who releases the Wholesale Price Index figures?

(a) Ministry of Statistics and Program Implementation

(b) Ministry of Home Affairs

(c) Ministry of Finance

(d) Ministry of Commerce and Industry

Answer: d

Explanation: Figures related to Wholesale Price Index are published by the Office of Economic Advisor (Ministry of Commerce & Industry).

9. Consumer Price Index (CPI) measures the price of...

(a) Goods only

(b) Both goods and services

(c) Services only 

(d) None of the above

Answer: b

Explanation: Consumer Price Index; measures the price of goods and services both. It includes 8 types of expenses i.e. tuition fee, communication, transportation, entertainment, clothing, food & beverages, housing and medical expenses.

10. When Consumer Price Index (CPI) data released?

(a) Every week

(b) Every month

(c) Every year

(d) Every day

Answer: b

Explanation: Figures of CPI-based inflation are issued every month in India. But WPI based figures related to primary commodities, fuel and electricity released on weekly basis while other figures are released on monthly basis.

11. What is the base year for Wholesale Price Index (WPI)?

(a) 2004-05

(b) 2001-02

(c) 2011-12

(d) 2014-15

Answer: c

Explanation: The base year for the Wholesale Price Index (WPI) is 2011-12. It was changed in May 2017.

12. Currently how many goods are covered in the Wholesale Price Index (WPI)?

(a) 697

(b) 556

(c) 710

(d) 220

Answer: a

Explanation: At present, the wholesale price index (WPI) issues index for 697 items. WPI calculation covers primary goods, fuel, electricity and manufactured products.

13. Who issues the Consumer Price Index (CPI) data?

(a) Ministry of Statistics and Program Implementation

(b) Ministry of Commerce and Industry

(c) Ministry of Finance

(d) None of the above

Answer: a

Explanation: The data of the Consumer Price Index (CPI) is released by the Central Statistics Office of the Ministry of Statistics and Program Implementation.

14. At which stage Wholesale Price Index (WPI) based inflation is calculated?

(a) First stage of transaction

(b)  Final stage of transaction

(c) Intermediate stage of production

(d) None of the above

Answer: a

Explanation: The Wholesale Price Index (WPI) is calculated on the basis of the payment made by the producers and the big traders in the wholesale market.

15. What is the base year of Consumer Price Index (CPI)?

(a) 2015

(b) 2004

(c) 2012

(d) 2001

Answer: c

Explanation: Presently the base year of Consumer Price Index (CPI) is 2012. The base year was changed in January 2017.

GK questions and answers on Indian Economy: Economic Planning in India


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