The primary purpose of the Consumer Price Index (CPI) is to measure: MCQ with Answer and Explanation

The primary purpose of the Consumer Price Index (CPI) is to measure:
A. Changes in the retail prices of a fixed basket of consumer goods and services
B. Export price competitiveness
C. Producer cost inflation
D. Wholesale market price trends
Answer: Option A
Solution (By JKSSB Mock Tests)
CPI tracks the average price change over time for a representative basket of goods and services purchased by households, serving as the main gauge of consumer inflation.

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Practice More Statistics Questions

Question #1
Gross Reproduction Rate (GRR) considers births of:
A. Male children only
B. All children
C. Female children only
D. First child only

Correct Answer: Option C


Explanation:
GRR is the average number of daughters a woman would bear, ignoring mortality.

This question belongs to: Accountancy and Statistics Statistics
Question #2
The most populous state of India as per 2011 Census is:
A. Maharashtra
B. West Bengal
C. Uttar Pradesh
D. Bihar

Correct Answer: Option C


Explanation:
Uttar Pradesh had the largest population in 2011.

This question belongs to: Accountancy and Statistics Statistics
Question #3
Population growth rate is calculated as:
A. (Births - Deaths) / Mid-year population × 100
B. (Births + Immigration - Deaths - Emigration) / Mid-year population × 100
C. Crude Birth Rate - Crude Death Rate
D. Both B and C are correct

Correct Answer: Option D


Explanation:
Natural growth rate = CBR - CDR (per 1,000); overall growth rate includes net migration. Both formulations are used, with B being comprehensive and C focusing on natural increase.

This question belongs to: Accountancy and Statistics Statistics