2010 General Studies, all questions

UPSC Prelims 2010 · General Studies

Question 86: Economy and Social Development

With reference to India, consider the following statements :

  1. 1.The Wholesale Price Index (WPI) in India is available on a monthly basis only.
  2. 2.As compared to Consumer Price Index for Industrial Workers (CPI(IW)), the WPI gives less weight to food articles.

Which of the statements given above is/are correct ?

a1 only
b2 only
cBoth 1 and 2
dNeither 1 nor 2

AnswerThe answer is (c).

The WPI measures price changes at the wholesale level, and the CPI for Industrial Workers measures retail prices for a working-class family. Food has a much smaller weight in the WPI (the food group is under a quarter of the index) than in the CPI(IW) (about half), so statement 2 is correct. The given answer also treats statement 1, that the WPI is available only monthly, as correct. Remember: WPI = wholesale prices, heavy on manufactured goods; CPI = retail prices, heavy on food.

  • 1. As keyed, the WPI is treated as a monthly index.
  • 2. Food carries a smaller weight in WPI than in CPI(IW).

How you could have got this

  1. If you were sure statement 1 is correct, (b) and (d) go: each of them leaves 1 out.

    What you needed to know: As keyed, the WPI is treated as a monthly index.

    The red flag in statement 1 is “only”. In UPSC’s papers, statements with “only” were true 27% of the time (82 statements). A hint, not a rule.

  2. Then, if you were sure statement 2 is correct, (a) goes: it leaves 2 out.

    What you needed to know: Food carries a smaller weight in WPI than in CPI(IW).

Only (c) is left. This one needs every statement.

This follows an unofficial answer: UPSC has not published its key for this year, and if that answer is wrong, so is this path.

Which options go is worked out from UPSC’s key and the options, not by a model.

Why each option is right or wrong
  • (a) Statement 2 about food weights is also correct.
  • (b) Statement 1 is also accepted as correct in the key.
  • (c) Right (as keyed): both statements are accepted.
  • (d) Statement 2 is certainly correct, so 'neither' is wrong.

Worth knowing: Statement 1 depends on how the WPI was released at the time, so the key is open to dispute.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2010, General Studies, Series A. The paper on upsc.gov.in.