Choose the correct statements from the following.

(A) Capital goods are those goods which are bought not for meeting immediate need of the consumer but for producing other goods.
(B) Households refer to the families or individuals who supply factors of production to the firms and which buy the goods and services from the firms
(C) Consumer Price Index is the index of prices of a given basket of commodity which are bought by the representative
consumer
(D) Wholesale Price Index refers to the percentage change in the weighted average price level.

Choose the correct answer from the options given below:

(A), (B), (C) and (D)

The correct answer is Option (1) → (A), (B), (C) and (D)

(A) Capital goods are those goods which are bought not for meeting immediate need of the consumer but for producing other goods. Correct. This is the standard definition of capital goods (e.g., machinery, equipment, buildings) in economics. They are producer goods, not consumer goods.

(B) Households refer to the families or individuals who supply factors of production to the firms and which buy the goods and services from the firms. Correct. In the circular flow of income model, households own the factors of production (land, labour, capital, entrepreneurship) and sell them to firms. They also use the income earned to buy the final goods and services produced by the firms.

(C) Consumer Price Index is the index of prices of a given basket of commodity which are bought by the representative consumer. Correct. The CPI measures the average change over time in the prices paid by urban consumers for a fixed basket of consumer goods and services, representing the purchases of a typical (representative) consumer.

(D) Wholesale Price Index refers to the percentage change in the weighted average price level. Correct. It measures the percentage change in the weighted average price level of goods traded in wholesale markets.