Consider the following statement about wholesale Price index (WPI) I. It captures the price movement extensively and is, therefore, taken as an indicator of inflation. II. The office of the Economic adviser (OEA) is entrusted with the function of compilat

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Q: 86 (CDS-II/2009)
Consider the following statement about wholesale Price index (WPI)
I. It captures the price movement extensively and is, therefore, taken as an indicator of inflation.
II. The office of the Economic adviser (OEA) is entrusted with the function of compilation and publication of the weekly wholesale price index number in India.
Which of the statements given above is/are cocrrect?

question_subject: 

Economics

question_exam: 

CDS-II

stats: 

0,31,39,20,8,31,11

keywords: 

{'wholesale price index': [0, 0, 5, 1], 'weekly wholesale price index number': [0, 0, 1, 0], 'inflation': [0, 1, 0, 3], 'economic adviser': [0, 0, 1, 0], 'price movement': [0, 0, 1, 0], 'oea': [0, 0, 1, 0], 'indicator': [1, 1, 1, 2], 'publication': [0, 0, 1, 2]}

The correct answer is option 3: Both I and II.

Explanation:

Statement I is correct. The Wholesale Price Index (WPI) is a measure of inflation in India. It captures the price movement of a basket of goods at the wholesale level, and is used as an indicator of inflation in the economy. The WPI covers a wide range of commodities, including agricultural, industrial, and manufactured products.

Statement II is also correct. The Office of the Economic Adviser (OEA) is responsible for the compilation and publication of the weekly Wholesale Price Index in India. The OEA is a part of the Ministry of Commerce and Industry, and is responsible for monitoring and analyzing economic trends and providing policy advice.

Therefore, both statements I and II are correct. The WPI is an important indicator of inflation in India, and its compilation and publication is the responsibility of the Office of the Economic Adviser.