BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1. Consumer Price Index
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2. Product Price Index
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3. Producer Price Index
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4. Market Price Index
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Detailed explanation-1: -The Producer Price Index or PPI is an index that measures the average price change received by the producer excluding the indirect taxes. The Wholesale Price Index represents the price change of a basket of goods and includes some taxes levied. The distribution costs are also considered in WPI.
Detailed explanation-2: -PPI = Current price of basket/Base price of basket Basket is the relative weight of goods and services in the current or base period.
Detailed explanation-3: -The Producer Price Index (PPI) is a family of indexes that measures the average change over time in selling prices received by domestic producers of goods and services.
Detailed explanation-4: -Definition. Wholesale Price Index is a measure of the average change in the price of goods at a wholesale level or in the wholesale market. Consumer Price Index is another price index that calculates price changes of goods and services that a consumer has to pay for consuming a basket of goods.