The "basket" on which the CPI is based is composed of
A)consumer production.
B)products purchased by the typical consumer.
C)raw materials purchased by firms.
D)total current production.
E)a selection of consumer goods typically purchased over the last 30 years.

Question

Quizplus · Accepted Answer

The "basket" on which the CPI is based is composed of products purchased by the typical consumer, such as food, housing, transportation, and clothing. The items in the basket are weighted according to their importance in the average consumer's spending.

The "Basket" on Which the CPI Is Based Is Composed