UPSC General Studies Sample Paper General Studies Sample Paper-3

  • question_answer
    The Government of India has come up with a new Consumer Price Index (CPI). With respect to the new Consumer Price Index, consider the following statements.
    1. Consumer Price Index is released every month.
    2. The common base year for CPI is 2012.
    3. Consumer Price Index represents the wholesale price of goods paid by the households for a basket of goods and services.
    4. More weightage is given to the manufacturing items under CPI.
    5. Housing forms one of the five major groups for which Consumer Price Index is available for both rural and urban areas.
    Which of the statements] given above is/are correct?

    A)  Only 1             

    B)  1, 3 and 5

    C)  2, 4 and 5                    

    D)  1, 2, 3 and 4

    Correct Answer: A

    Solution :

    [a] While WPI (Wholesale Price Index) represents wholesale prices of goods, CPI indicates the average  paid by households for a basket of goods and services Central Statistics Office (CSO), Ministry of Statistics  Programme Implementation releases CPI with base 2010 for all India and States/UTs separately for rural, and combined (rural + urban) every month with effect January, 2011.These indices are available for five major groups namely food, beverages and tobacco; fuel and light; housing only for urban; rural areas are not included); clothing, bedding and footwear and miscellaneous. Approximately 50%weightage is given to food items and total number commodities in the index is 200.                

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