All of the following are true about the Consumer Price Index except
A) it has a base period of 2002-2003.
B) it is based on a market basket of items.
C) it includes charges for services (like doctor bills).
D) it is the primary measure of the cost of living in the U.S.

Question

All of the following are true about the Consumer Price Index except​
A) ​it has a base period of 2002-2003.
B) ​it is based on a market basket of items.
C) ​it includes charges for services (like doctor bills).
D) ​it is the primary measure of the cost of living in the U.S.

Quizplus · Accepted Answer

The base period for the Consumer Price Index was changed to 1982-1984 in 1995 and then to 2012-2013 in 2020. Therefore, choice A is not true. The other choices are all true: the CPI is based on a market basket of items, it includes charges for services, and it is the primary measure of the cost of living in the U.S.

All of the Following Are True About the Consumer Price