Forest ServicesQ41. 41.
Which one of the following statements best reflects the most logical, rational and crucial message conveyed by the passage?
Detailed Solution
The passage discusses the complexity of inflation measurement. It states that "a single number for inflation is an aggregate across different commodities and services – the price rise differs for different items of consumption." It further highlights that "people are not homogeneous.
The consumption basket is vastly different for the poor, the middle classes, and the rich. Hence, the CPI is different for each of these classes and a composite index requires averaging the baskets." This clearly implies that a single, aggregated inflation number, as currently calculated, may not accurately reflect the price rise experienced by different segments of the population or for individual items.
Option (a) is an extreme suggestion not supported by the passage. Option (c) introduces "services" being under-represented, which is not explicitly stated. Option (d) dismisses the utility of inflation data, which contradicts the passage's analytical tone.
The core message is about the inherent limitations and challenges in accurately capturing the diverse reality of price changes through a single inflation figure. This question assesses the ability to identify the nuanced central argument of a text.
Current Affairs Link
Inflation measurement (WPI, CPI) is a recurring topic in Economy and Current Affairs.
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