Which of the following is true about the comparison between the CPI and the PPI?
A) Both indices are based on the same basket of goods and services.
B) Sales and excise taxes are included in the PPI, but they are not included in the CPI.
C) The PPI is more commonly used to adjust wages for changes in the cost of living than the CPI.
D) Unlike the CPI that uses prices people pay, the PPI uses the prices measured at the wholesale level.

Question

Quizplus · Accepted Answer

Unlike the CPI that uses prices people pay, the PPI uses the prices measured at the wholesale level. This means that the PPI tracks the prices of goods and services as they move through the production process before they reach consumers, while the CPI tracks the prices paid by consumers for those same goods and services.

Which of the Following Is True About the Comparison Between