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    Question

    Which statement about the Wholesale Price Index (WPI) is

    INCORRECT?
    A It is an indicator of average price movement Correct Answer Incorrect Answer
    B It does not cover services Correct Answer Incorrect Answer
    C It includes indirect taxes Correct Answer Incorrect Answer
    D It includes multiple counting bias Correct Answer Incorrect Answer

    Solution

    WPI characteristics:
    - Indicates average price movement of goods
    - Used as a GDP deflator
    - Helps formulate economic policies
    - Does not include indirect taxes
    - Includes multiple counting bias
    - Focuses on wholesale-stage price movements

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