What do cost of living indexes across cities measure?
A) The change in the general level of prices that occurred in each city during the year.
B) The average earnings of persons employed in the city during the year.
C) Differences in prices that affect the cost of purchasing a typical bundle of goods and services in each of the cities.
D) Changes in the earnings of the typical person working in each of the cities during the year.

Question

Quizplus · Accepted Answer

Cost of living indexes measure differences in prices that affect the cost of purchasing a typical bundle of goods and services in each of the cities. These indexes take into account the prices of various goods and services such as housing, groceries, transportation, utilities, and healthcare to provide a comparison of the relative cost of living between different cities. They are often used by individuals and businesses to make decisions about relocating or expanding into new areas.

What Do Cost of Living Indexes Across Cities Measure