Prices of finished imported goods are
A) not included in the CPI because the goods were produced outside the country
B) not included in the CPI because different countries choose different base periods
C) not included in the CPI because import prices are not denominated in U.S.dollars
D) not included in the CPI because most imports are raw materials
E) included in the CPI

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) includes prices of finished imported goods because it measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, which includes imports.

Prices of Finished Imported Goods Are