Question

Which one of the following statements is incorrect?

The CPI pertains to the cost of living.
The PPI pertains to the cost of production.
The CPI basket includes services.
The prices in the CPI basket exclude value-added tax.

Answer 1

[AI-generated answer — Bot GPT 3.5]

The statement "The prices in the CPI basket exclude value-added tax" is incorrect. The Consumer Price Index (CPI) includes all taxes, including value-added tax, in calculating the cost of living.