Economic Awareness - Sectors of Indian Economy
What does the Consumer Price Index (CPI) basket typically exclude?
What does the Consumer Price Index (CPI) basket typically exclude?
easy Q2 of 15
Step-by-Step Solution
Step 1: Understand CPI basket composition
CPI basket includes goods and services consumed by households, such as food, beverages, housing, and fuel.Step 2: Identify exclusions
Capital goods and intermediate goods are excluded from CPI as CPI measures retail consumer prices, not production or investment goods.Final Answer:
Capital goods and intermediate goods → Option BQuick Check:
CPI excludes capital and intermediate goods ✅
Quick Trick: CPI focuses on consumer goods, not capital goods.
Common Mistakes:
- Assuming all goods including capital goods are in CPI basket.
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