General Awareness Quiz on Inflation- 10th December 2020

Q1.What is inflation?
(a)Inflation refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing, recreation, transport, consumer staples, etc.
(b)Inflation is indicative of the decrease in the purchasing power of a unit of a country’s currency
(c)Inflation measures the average price change in goods and services in a quarter
(d)Both (a)&(b)
(e)Both (a)&(c)

Q2.Who has the authority to measure Inflation in India?
(a)Ministry of Statistics and Programme Implementation
(b)Reserve bank of India
(c)Ministry of finance
(d)Ministry of Home affairs
(e)Central statistics office

Q3.What are the causes to measure Inflation?
(a)Demand-pull inflation
(b)Cost-push inflation
(c)Devaluation
(d)Rising wages
(e)All of the above

Q4.What is Full Form of WPI?
(a)Wholesale Price Instability
(b)Word Price Index
(c)Wholesale Price Index
(d)Weighted Price Index
(e)Weighted Price Indice

Q5.Base year to calculate CPI is-
(a)2010
(b)2011
(c)2012
(d)2007
(e)2000

Q6.which of these is Not a type of Consumer price index?
(a)CPI for Industrial Workers (IW)
(b)CPI for Agricultural Labourer (AL).
(c)CPI for Rural Labourer (RL).
(d)CPI (Rural/Urban/Combined)
(e)CPI for investors(IV)

Q7.Total number of items covered under WPI are-
(a)697
(b)504
(c)616
(d)532
(e)422

Q8.What is Consumer Price Index?
(a)An index that measures and tracks the changes in the price of goods in the stages before the retail level.
(b)An index that measures the percentage change in the price of a basket of goods and services consumed by households.
(c)A statistic composite index of life expectancy, education and per capita income indicators
(d)An index that measures the average changes in prices received by domestic producers for their output.
(e)It is the graph which indicates the various production possibilities of two commodities when resources are fixed.

Q9.How is Inflation measured?
(a)Wholesale Price Index
(b)Consumer Price Index
(c)Value index
(d)Both (a) & (b)
(e)Both (b) & (c)

Q10.Producer Price Index measures-
(a)Cost changes from the viewpoint of wholeseller
(b)Price movements from the investors point of view
(c)Price movements due to change in demand or supply of a product
(d)Cost changes from the viewpoint of the consumer
(e)Price movements from the seller’s point of view

Q11.In order to show the average price changes of goods, Wholesale price index is reported on-
(a)Quarterly basis
(b)Monthly basis
(c)weekly
(d)yearly
(e)every 2 years

Q12.Ministry of Statistics and Programme Implementation (MOSPI) and _____________are engaged in the construction of different CPIs for different groups/sectors
(a)Ministry of Finance
(b)Ministry of Defense
(c)Ministry of Home Affairs
(d)Ministry of Labour and Employment
(e)CSO

Q13.What is the Base year to Calculate WPI?
(a)1998-99
(b)2000-01
(c)2004-05
(d)2008-09
(e)2011-12

Solutions

S1.Ans.(d)
Sol. Inflation refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing, recreation, transport, consumer staples, etc.It is indicative of the decrease in the purchasing power of a unit of a country’s currency.

S2.Ans.(a)
Sol. The Ministry of Statistics and Programme Implementation measures inflation in India.

S3.Ans.(e)
Sol.The causes to measure Inflation are Demand-pull inflation,Cost-push inflation, Devaluation & Rising wages.

S4.Ans.(c)
Sol.Full Form of WPI is Wholesale Price Index.

S5.Ans.(c)
Sol.Base year to calculate CPI in India is 2012.

S6.Ans.(e)
Sol.(e)CPI for Farmers(FR) is not any type of CPI.

S7.Ans.(a)
Sol.Total number of items covered under WPI are 697.It measures change in prices of goods charged by whole seller.

S8.Ans.(b)
Sol.The most well-known indicator of inflation is the Consumer Price Index (CPI), measures the percentage change in the price of a basket of goods and services consumed by households.

S9.Ans.(d)
Sol.In India, inflation is primarily measured by two main indices — WPI (Wholesale Price Index) and CPI (Consumer Price Index).

S10.Ans.(e)
Sol.Producer Price Index measures price movements from the seller’s point of view.

S11.Ans.(c)
Sol.In order to show the average price changes of goods, Wholesale price index is reported on monthly basis.

S12.Ans.(d)
Sol.Two Ministries – Ministry of Statistics and Programme Implementation (MOSPI) and Ministry of Labour and Employment (MOLE) are engaged in the construction of different CPIs for different groups/sector.

S13.Ans.(e)
Sol.Base year to calculate WPI in India is 2011-12.

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