The Consumer Price Index attempts to measure
A)the average of raw material prices paid by producing firms.
B)the level of prices with respect to goods and services purchased by wage earners in urban areas.
C)the level of prices with respect to goods and services purchased by retired couples in rural areas.
D)hourly wage rates of manufacturing workers.

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It focuses on goods and services typically purchased by wage earners in urban areas. It does not measure raw material prices, prices for retired couples, or hourly wage rates of manufacturing workers.

The Consumer Price Index Attempts to Measure