Which of the following measures the changes in the prices of a "market basket" of some 300 goods and services purchased by typical urban consumers?
A) the GDP Price Index
B) the Consumer Price Index
C) the Retail Trade survey
D) the Wholesale Price Index

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) measures the changes in the prices of a market basket of some 300 goods and services purchased by typical urban consumers. The other options listed do not measure changes in consumer prices. The GDP price index measures changes in the prices of all goods and services included in GDP, not just those purchased by consumers. The Retail Trade survey measures changes in retail sales, not prices. The Wholesale Price Index measures changes in the prices received by wholesalers, not necessarily the prices paid by consumers.

Which of the Following Measures the Changes in the Prices