How is the typical market basket determined for the Consumer Price Index (CPI)?
A) By the President
B) By the U.S.Congress
C) By a survey of the spending patterns of thousands of businesses
D) By a survey of the spending patterns of thousands of government agencies
E) By a survey of the spending patterns of thousands of households

Question

Quizplus · Accepted Answer

The typical market basket for the Consumer Price Index (CPI) is determined by a survey of the spending patterns of thousands of households. The Bureau of Labor Statistics (BLS) conducts the Consumer Expenditure Survey (CEX) to gather this data. This survey collects information on how much consumers spend on a wide range of goods and services, including food, housing, transportation, healthcare, and more. The data collected from the CEX is used to create the weighting system for the CPI, which is used to calculate the inflation rate.

How Is the Typical Market Basket Determined for the Consumer