ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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measures the cost of a representative basket of goods and services to the consumers
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includes the cost of manufactured goods to the consumers.
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includes the cost of capital and intermediate goods.
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excludes the price of imported goods
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Detailed explanation-1: -The Producer Price Index (PPI) measures the average change in prices U.S. producers receive for the sale of their products. Since tariffs and taxes are not retained by producers as revenue, they are explicitly excluded from the PPI.
Detailed explanation-2: -The Producer Price Index (PPI) program measures the average change over time in the selling prices received by domestic producers for their output. The prices included in the PPI are from the first commercial transaction for many products and some services.
Detailed explanation-3: -The industries that comprise the PPI include mining, manufacturing, agriculture, fishing, forestry, natural gas, electricity, construction, waste, and scrap materials. As the PPI is meant to evaluate the output of U.S. producers, imports are excluded.
Detailed explanation-4: -PPI = Current price of basket/Base price of basket Basket is the relative weight of goods and services in the current or base period.