The weights used in computing the consumer price index are
A) based on the expenditure of a selected, typical family on all goods and services in any given month.
B) based on the results of a survey of expenditure patterns of many businesses in the base year.
C) based on the responses of a surveyed group of families to changes in the prices of goods and services on a month-to-month basis.
D) based on the results of surveys of expenditure patterns of many families taken every 10 years or so.
E) none of the above.

Question

Quizplus · Accepted Answer

The weights used in computing the consumer price index (CPI) are derived from surveys of expenditure patterns of many families, typically conducted every 10 years or so. These surveys are used to understand how the average consumer allocates their spending across different goods and services, which in turn informs the weighting of those items in the CPI calculation.

The Weights Used in Computing the Consumer Price Index Are