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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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