What basket of goods and services is used to construct the CPI?
A)a random sample of all goods and services produced in the economy
B)the goods and services that are typically bought by consumers as determined by government surveys
C)only food,clothing,transportation,entertainment,and education
D)the least expensive and the most expensive goods and services in each major category of consumer expenditures

Question

Quizplus · Accepted Answer

The CPI basket of goods and services is determined by government surveys that track what consumers typically purchase. This includes a variety of categories such as food, housing, transportation, healthcare, and entertainment. It is not a random sample, nor is it limited to a select few categories such as in choice C. It also does not consider only the extremes of expenses, as in choice D.

What Basket of Goods and Services Is Used to Construct