The Consumer Price Index is a measure of the average of the prices paid by for a fixed basket of consumer goods and services.
A) consumers living in cities with a population greater than 100,000
B) urban consumers
C) urban wage earners and clerical workers
D) all consumers

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) is calculated for urban consumers only, specifically for households in metropolitan areas with populations of at least 10,000. Therefore, option B is the correct choice. Option A is incorrect because it only considers cities with a population above 100,000. Option C is incorrect because it only considers urban wage earners and clerical workers, omitting other urban consumers. Option D is incorrect because the CPI does not represent all consumers, only urban consumers.

The Consumer Price Index Is a Measure of the Average