What does the consumer price index measure?
A) the cost of all consumer goods and services produced in the Canadian economy
B) the cost of all consumer goods produced in the Canadian economy
C) the cost of a fixed market basket of consumer goods and services produced in the Canadian economy
D) the cost of a fixed market basket of producer goods and services

Question

What does the consumer price index measure?  
A) the cost of all consumer goods and services produced in the Canadian economy 
B) the cost of all consumer goods produced in the Canadian economy 
C) the cost of a fixed market basket of consumer goods and services produced in the Canadian economy 
D) the cost of a fixed market basket of producer goods and services

Quizplus · Accepted Answer

The consumer price index measures the cost of a fixed market basket of consumer goods and services produced in the Canadian economy. The basket includes goods and services commonly purchased by households, such as food, housing, transportation, and health care. By tracking changes in the price of this basket over time, the CPI provides an indication of inflation and how prices are changing for Canadian consumers.

What Does the Consumer Price Index Measure