Practice Wholesale Price Index (7.4.2) - Index Numbers

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9 questions

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Exercise
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6 sample questions

Question 1.
What does WPI stand for?
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It's related to measuring prices before they reach consumers.
Question 2.
What does the base year represent in index numbers?
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Think of it as a starting point.
3Question 3.
What does a rising WPI indicate?
- Decreasing prices
- Increasing prices
- No change
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Consider what happens to costs over time.
4Question 4.
True or False: WPI includes prices of services.
- True
- False
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Think about the types of products included.
Question 5.
Consider a base year WPI of 100. If the index in the current year shows 150, calculate the percentage increase and explain what it means for inflation.
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Use the percentage change formula to calculate.
Question 6.
If the WPI of food has increased significantly compared to other categories, analyze how this may impact consumer behavior and economic policy.
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Consider the broader economic implications.

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