× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
5
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
Home Q & A Board Other Fields Homework Help Business
New Topic  
LemyLekySama LemyLekySama
wrote...
Posts: 36
Rep: 0 0
11 years ago
a. the PPI is based on retail prices and the CPI is based on wholesale prices
b. the PPI measures the cost of living of self-employed workers and the CPI measures the cost of living of salaried workers
c. the PPI generally registers a higher rate of inflation than the CPI
d. the PPi is based on the cost of a basket typically purchased by producers, while the CPI is based on the cost of a basket typically purchased by consumers
Read 636 times
3 Replies

Related Topics

Replies
wrote...
#1
11 years ago
Actually none of the above is correct.

A is the closest in that the PPI is based on what producers receive for their goods (typically wholesale prices) and CPI is based on actual expenditures by households (typically retail prices).

B is just the ridiculous, immediately ruled out option

The opposite of C is true, the PPI has been lower than the CPI for as long as the CPI has been recorded

D sounds reasonable but, as stated above, the PPI is based on what producers receive for their goods rather than the cost of their materials.
wrote...
#2
11 years ago
The answer is D, finale.
wrote...
#3
10 years ago
My personal answer would be letter A. Which states that the PPI is based on retail prices and the CPI is based on wholesale prices. According to my research PPI or Producer Price Index measures comprises prices of both capital equipment and consumer goods, but does not take into account prices for services. Meanwhile the Consumer Price Index or CPI covers many areas of goods and services, like food and beverages, alcohol, tobacco, education and communication, medical care, housing, transportation and recreation.




Source  http://personalmoneynetwork.com/moneyblog/2013/12/03/christmas-price-index/Christmas Price Index rising faster than the cost of living
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1322 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 267
  
 129
  
 211