Question

    Which of the following statements regarding WPI is/are

    correct? 1. WPI focuses on the average wholesale prices of goods at basic prices. 2. Taxes and transportation costs are included in the WPI calculation. 3. WPI is used to calculate the GDP deflator. 4. Services are included in the WPI basket.
    A 1 and 3 only Correct Answer Incorrect Answer
    B 1, 3, and 4 only Correct Answer Incorrect Answer
    C 2 and 4 only Correct Answer Incorrect Answer
    D 1, 2, and 4 only Correct Answer Incorrect Answer

    Solution

    WPI focuses on wholesale prices excluding taxes and transport costs and is used for GDP deflator calculation. Services are not included in WPI.

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