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

Question

Quizplus · Accepted Answer

The first step in measuring the CPI is to select the market basket, which is a representative group of goods and services commonly purchased by consumers. This selection process involves collecting data on the quantities and types of goods and services that consumers typically buy. Only after the market basket has been selected can prices be collected for the goods and services within it. The other options listed may be steps in the overall process of measuring the CPI, but they do not come before selecting the market basket.

The First Step in Measuring the CPI Is to