UPSC Prelims Practice Questions — Base Year of Wholesale Price Index Revised from 2011–12 to 2022–23

Q1. The Working Group constituted to recommend the revised base year (2022-23) and commodity basket for the Wholesale Price Index (WPI) and to chart a roadmap for the switch-over to a Producer Price Index (PPI) in India was chaired by which one of the following?

  • A. Dr. Bibek Debroy
  • B. Dr. Arvind Virmani
  • C. Dr. Ramesh Chand
  • D. Dr. Suman Bery

Q2. With reference to the revision of India's Wholesale Price Index (WPI) from base 2011-12 to base 2022-23, consider the following statements:

  1. The new WPI series with base 2022-23 will be compiled by the Ministry of Statistics and Programme Implementation, whereas the existing 2011-12 series is compiled by the Department for Promotion of Industry and Internal Trade.
  2. Unlike the WPI, the Producer Price Index (PPI) — for which a roadmap is being prepared alongside the base-year revision — measures prices excluding indirect taxes and trade margins.
  3. The Working Group constituted for the WPI base-year revision was chaired by Dr. Ramesh Chand, Member, NITI Aayog, and was also mandated to recommend a roadmap for switch-over from WPI to PPI.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. With reference to the successive base years officially used for the All-India Wholesale Price Index (WPI) series compiled by the Office of the Economic Adviser, consider the following: 1. 1961-62 2. 1978-79 3. 1993-94 4. 2004-05 Which of the above have been used as base years of the WPI series in India?

  1. 1961-62
  2. 1978-79
  3. 1993-94
  4. 2004-05
  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 1, 3 and 4
  • D. 1, 2 and 3

Q4. With reference to the Wholesale Price Index (WPI) and the Consumer Price Index (CPI) in India, consider the following statements:

  1. The WPI is compiled by the Office of the Economic Adviser under the Department for Promotion of Industry and Internal Trade, whereas the CPI (Combined) is compiled by the National Statistical Office under the Ministry of Statistics and Programme Implementation.
  2. Under Section 45ZB of the Reserve Bank of India Act, the inflation target that the Monetary Policy Committee is mandated to achieve is defined in terms of the Wholesale Price Index.
  3. The WPI basket covers only transactions in goods at the wholesale stage and excludes services, while the CPI baskets include services such as health, education and transport consumed by households.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q5. With reference to the proposed transition from the Wholesale Price Index (WPI) to the Producer Price Index (PPI) in India, which of the following statements is/are NOT correct?

  1. The Working Group to recommend a roadmap for switch-over from WPI to PPI is chaired by Dr. Ramesh Chand, Member, NITI Aayog.
  2. As per the IMF Producer Price Index Manual, PPI values output at basic prices, which exclude taxes on products and include subsidies on products.
  3. The Producer Price Index in India is to be compiled and released by the Ministry of Statistics and Programme Implementation (MoSPI).
  4. The methodology of PPI compilation is examined by the Technical Advisory Committee on Statistics of Price and Cost of Living (TAC-SPCL) before approval.
  • A. 1 and 2
  • B. 2 and 4
  • C. 1, 2 and 4
  • D. 3 only

Q6. Who chairs the Advisory Committee on National Account Statistics (ACNAS) constituted by the Ministry of Statistics and Programme Implementation to advise on the revised Gross Domestic Product series with base year 2022-23?

  • A. Dr. Ramesh Chand
  • B. Prof. B.N. Goldar
  • C. Dr. Bibek Debroy
  • D. Dr. C. Rangarajan

Q7. With reference to the major-group weights of the All-India Wholesale Price Index (WPI), consider the following statements comparing the 2004-05 series with the 2011-12 series: 1. The weight of the Primary Articles group was increased in the 2011-12 series relative to the 2004-05 series. 2. The weight of the Fuel & Power group was reduced in the 2011-12 series relative to the 2004-05 series. 3. The weight of the Manufactured Products group, which is the largest among the three major groups, was raised in the 2011-12 series relative to the 2004-05 series. Which of the statements given above is/are correct?

  1. The weight of the Primary Articles group was increased in the 2011-12 series relative to the 2004-05 series.
  2. The weight of the Fuel & Power group was reduced in the 2011-12 series relative to the 2004-05 series.
  3. The weight of the Manufactured Products group, which is the largest among the three major groups, was raised in the 2011-12 series relative to the 2004-05 series.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q8. The National Statistical Commission (NSC) of India is best described as which one of the following?

  • A. A non-statutory body constituted by a Government of India Resolution to evolve policies, priorities and standards in statistical matters
  • B. A statutory body established under an Act of Parliament to regulate the collection and dissemination of all official statistics in India
  • C. A constitutional body created under Article 280 to advise the President of India on matters relating to official statistics
  • D. An attached office of the Ministry of Statistics and Programme Implementation primarily responsible for compiling the Consumer Price Index and conducting the Population Census