Question

What Index measures prices paid by businesses during various stages of production, including crude goods, immediate goods, and finished goods?

a) Consumer Price Index (CPI)
b) Producer Price Index (PPI)
c) Retail Price Index (RPI)
d) Wholesale Price Index (WPI)

Answer 1

The Producer Price Index (PPI) measures prices paid by businesses during various stages of production, including crude goods, intermediate goods, and finished goods.

Step-by-step explanation:

The index that measures prices paid by businesses during various stages of production, including crude goods, intermediate goods, and finished goods, is the Producer Price Index (PPI).

This index is used to measure inflation based on the prices paid for supplies and inputs by producers of goods and services.

It breaks down into different indices for various industries, commodities, and stages of processing. The PPI differs from the Consumer Price Index (CPI), which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Therefore, the correct answer is b) Producer Price Index (PPI).