Question

What basket of goods and services is used to construct the CPI?
a.

Only food, clothing, transportation, entertainment, and education
b.

The goods and services that are typically bought by consumers as determined by government surveys
c.

A random sample of all goods and services produced in the economy
d.

The least expensive and the most expensive goods and services in each major category of consumer expenditures

Answers

GPT-4o mini
The correct answer is:

**b. The goods and services that are typically bought by consumers as determined by government surveys**

The Consumer Price Index (CPI) is constructed based on a representative basket of goods and services that reflects the spending habits of consumers, which is determined through surveys conducted by government agencies.

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