Resources › CA MCQ Practice
3 Jun 2026Economy3 questions

Revision of Wholesale Price Index (WPI) Base Year to 2022-23

UPSC-standard MCQs with explanations, trap analysis, and approach guide. Answer after the test — not before.

1

Easy

1

Medium

1

Hard

Practice this set

3 questions · full analysis after submission · no sign-up required

Start test →Read the article first

Article summary

The Government of India has revised the base year for the Wholesale Price Index (WPI) from 2011-12 to 2022-23 to better reflect the current economic structure. This revision aims to capture structural changes in the economy, update the commodity basket by including new items, and adjust weightages to align with contemporary production and consumption patterns. The updated WPI will provide a more accurate measure of macroeconomic inflation at the wholesale level, aiding policymakers, the Reserve Bank of India (RBI), and businesses in making informed economic decisions.

What this tests

recallTests whether you read the article and retained key facts.
1Q
applicationTests whether you can apply the concept to a new scenario.
1Q
analysisTests whether you can reason across multiple related facts.
1Q

Sample questions — answers revealed after test

EconomyRecallEasy

Q1. The Wholesale Price Index (WPI) in India is published by which of the following authorities?

AOffice of the Economic Adviser (OEA), Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
BCentral Statistics Office (CSO), Ministry of Statistics and Programme Implementation
CReserve Bank of India, Department of Economic and Policy Research
DNational Statistical Office (NSO), under the Ministry of Finance
Answer revealed after you submit the test
EconomyApplicationMedium

Q2. A policymaker is comparing WPI and CPI data to assess inflation in the services sector of the Indian economy. Which of the following conclusions is most appropriate based on the structural design of these indices?

AWPI can serve as a partial proxy for services inflation because it captures price movements of goods used as intermediate inputs in the services sector.
BNeither WPI nor CPI captures services inflation because both indices are restricted to goods traded at the wholesale or retail level respectively.
CWPI is structurally incapable of tracking services inflation as it covers only goods traded at the wholesale level, whereas CPI does include a services component.
DWPI is the more appropriate tool for services inflation tracking because it is compiled at a more aggregated level than CPI, reducing household-level noise.
Answer revealed after you submit the test
EconomyAnalysisHard

Q3. Consider the following statements regarding the revision of the Wholesale Price Index (WPI) base year and its macroeconomic implications: 1. Revision of the WPI base year involves updating the commodity basket and reassigning weights based on the gross value of output at the wholesale level. 2. WPI is used as a deflator for nominal macroeconomic variables, and an outdated base year can introduce systematic distortions in real GDP estimates. 3. Since WPI excludes services, a base year revision cannot improve the accuracy of inflation measurement in a services-dominated economy. 4. The periodic revision of price indices is consistent with international best practices and enhances the credibility of India's macroeconomic data with global investors. Which of the statements given above are correct?

A1, 2 and 4 only
B1 and 3 only
C2, 3 and 4 only
D1, 2, 3 and 4
Answer revealed after you submit the test
Practice all 3 questions →All CA MCQ sets