The consumer price index (CPI)excludes all of the following goods and services except one.Which type of good is included in the CPI?
A) Raw materials
B) Imported goods purchased by consumers
C) Machinery purchased by firms
D) Goods purchased by the government
E) Intermediate goods

Question

Quizplus · Accepted Answer

The CPI includes imported goods purchased by consumers. The other options listed are excluded from the CPI. Raw materials and intermediate goods are excluded because they are used in the production of other goods and not sold directly to consumers. Machinery purchased by firms is excluded because it is a capital good and not a consumer good. Goods purchased by the government are also excluded because they are not purchased by individual consumers.

The Consumer Price Index (CPI)excludes All of the Following Goods