economics medium mcq

In the Consumer Price Index (CPI) for Rural Labourers, which category holds the highest weightage?

  1. Housing
  2. Fuel and Light
  3. Food and Beverages
  4. Clothing and Footwear

Answer: Food and Beverages

In India's CPI indices, particularly for rural areas, the 'Food and Beverages' category holds the highest weightage (over 54% in CPI-Rural). This reflects the Engel's Law principle, where lower-income rural households spend a disproportionately large share of their income on basic sustenance.

Topic Macroeconomics - Inflation
Exam Relevance UPSC Prelims, SSC CGL, Banking

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