A monthly price index that is designed to measure changes in prices of goods sold in primary markets (i.e., first purchase of a commodity in non-retail markets) is the
A) Consumer Price Index.
B) Producer Price Index.
C) Dow Jones Average.
D) Weighted aggregate price index.

Question

Quizplus · Accepted Answer

The Producer Price Index (PPI) measures the average changes in prices received by domestic producers for their output. It is designed to provide a monthly price index that is meant to measure changes in prices of goods sold in primary markets, i.e. first purchase of a commodity in non-retail markets.

A Monthly Price Index That Is Designed to Measure Changes