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. Central Price Indicator
B. Cost of Production Index
C. Consumer Price Index
D. Commodity Price Index
Answer: Option C
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
Which of the following is a characteristic of the 'Quality Ladder' models of endogenous growth?
A. There is no role for research and development
B. Innovation only expands the variety of products
C. Growth is purely exogenous
D. Innovation takes the form of improvements in the quality of existing products

Correct Answer: Option D


Explanation:
Quality-ladder (or vertical-innovation) models of endogenous growth, associated with Aghion-Howitt and Grossman-Helpman, treat innovation as successive improvements in the quality of intermediate or final goods.

This question belongs to: Economy GK Economy Set 1
Question #2
The concept of 'Interoperability' in digital markets refers to:
A. The complete isolation of platforms
B. Only the proprietary control of all interfaces
C. The ability of different systems, platforms or services to work together and exchange information
D. Only the absence of any data sharing

Correct Answer: Option C


Explanation:
Interoperability is the capacity of different digital systems or platforms to communicate, exchange data and use the exchanged information, which can reduce switching costs and increase contestability.

This question belongs to: Economy GK Economy Set 1
Question #3
Which of the following is NOT a type of market based on the degree of competition?
A. Oligopoly
B. Barter market as a competition classification
C. Perfect competition
D. Monopoly

Correct Answer: Option B


Explanation:
Barter refers to exchange without money. Market structures based on competition are perfect competition, monopolistic competition, oligopoly and monopoly.

This question belongs to: Economy GK Economy Set 1