In the context of inflation measurement in India, CPI stands for: MCQ with Answer and Explanation

In the context of inflation measurement in India, CPI stands for:
A. Commodity Price Index
B. Consumer Price Index
C. Cost of Production Index
D. Central Price Indicator
Answer: Option B
Solution (By JKSSB Mock Tests)
CPI is the Consumer Price Index, which measures changes in the price level of a basket of consumer goods and services. It is the primary measure targeted by RBI for inflation.

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Practice More Economy Set 1 Questions

Question #1
In the context of Indian banking, the term 'Priority Sector Lending' includes advances to:
A. Only export-oriented units
B. Only large industrial houses
C. Agriculture, micro and small enterprises, education and housing
D. Only infrastructure projects by private companies

Correct Answer: Option C


Explanation:
Priority Sector Lending targets sectors such as agriculture, micro, small and medium enterprises, education, housing, social infrastructure and renewable energy.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is a characteristic of the 'Circular Economy' concept?
A. Only the maximisation of resource extraction
B. Only the maximisation of consumption without regard to waste
C. An economic system aimed at eliminating waste and the continual use of resources through reuse, repair, remanufacturing and recycling
D. A linear take-make-dispose model

Correct Answer: Option C


Explanation:
The circular economy seeks to keep products, materials and resources in use for as long as possible, extracting maximum value and then recovering and regenerating them at the end of their service life.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'non-accelerating inflation rate of unemployment' is called:
A. NREGA
B. NAIRU
C. NAFTA
D. NATO

Correct Answer: Option B


Explanation:
NAIRU is the non-accelerating inflation rate of unemployment.

This question belongs to: Economy GK Economy Set 1