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 Consumer Price Index (CPI) is constructed using a basket of goods and services that are typically bought by consumers, as determined by government surveys. This basket is designed to represent the spending habits of the average consumer in the economy.

What Basket of Goods and Services Is Used to Construct