Which statement describes a difference between the consumer price index (CPI) and the producer price index (PPI)?
A) Only the CPI is associated with the problem of quality changes.
B) Only the PPI is associated with the problem of eliminating goods and services from the basket.
C) Only the PPI measures net revenues received by firms.
D) Only the PPI has a fixed market basket.

Question

Quizplus · Accepted Answer

The PPI measures the average change over time in the selling prices received by domestic producers for their output, which relates to net revenues.

Which Statement Describes a Difference Between the Consumer Price Index