The consumer price index is
A) a monthly price index that is designed to measure changes in prices for goods sold in primary markets.
B) a quarterly price index that uses 100 as a base.
C) a monthly price index that uses the price changes in a market basket of consumer goods and services to measure the changes in consumer prices over time.
D) another name for the Paasche index.

Question

Quizplus · Accepted Answer

The consumer price index is a monthly price index that measures the changes in consumer prices over time by using the price changes in a market basket of consumer goods and services. It is not designed to measure changes in prices for goods sold in primary markets and is not a quarterly price index. The Paasche index is a different type of price index.

The Consumer Price Index Is