The consumer price index (CPI) compares the prices of:
A) all goods and services in the economy compared to the prices of those goods and services in a base year.
B) consumer goods and services that a household purchases to the prices of those goods and services purchased in a base year.
C) producer goods and services that are made for consumers to the prices of those goods and services in a base year.
D) goods and services that are purchased by producers to the prices of those goods and services in a base year.

Question

Quizplus · Accepted Answer

The CPI is a measure of the average change over time in the prices that consumers pay for a basket of goods and services. This basket represents the goods and services that a typical household purchases, so option B is the most accurate description.

The Consumer Price Index (CPI) Compares the Prices Of