The first step in measuring the CPI is to
A) interview businesses.
B) collect prices for the basket of goods and services.
C) conduct a monthly survey.
D) select the market basket.

Question

Quizplus · Accepted Answer

The first step in measuring the CPI is to select the market basket, which represents the goods and services typically consumed by households. Once this basket is determined, prices for each item in the basket are collected, and the CPI is calculated based on the changes in these prices over time. Conducting a monthly survey and interviewing businesses are steps in the process, but they come after the market basket has been selected.

The First Step in Measuring the CPI Is to