The consumer price index (CPI):
A) adjusts for changes in product quality.
B) includes separate market baskets of goods and services for both base and current years.
C) includes only goods and services bought by typical urban consumer.
D) uses current year quantities of goods and services.

Question

Quizplus · Accepted Answer

The CPI includes only goods and services bought by typical urban consumers. It does not include separate market baskets for base and current years, and it does not adjust for changes in product quality. It also uses a fixed set of quantities of goods and services from a base year as the reference point for measuring changes in prices.

The Consumer Price Index (CPI)