To compute the CPI,the Bureau of Labor Statistics (BLS)compiles a "basket of goods" that ________;each price in the index is weighted by ________.
A)are produced in the United States;an expenditure survey
B)the average farmer produces;how long it takes for the particular good to reach the market
C)the average urban consumer buys;the quantity of the good that goes into the basket
D)only members of congress purchase;a "luxury" score
E)is typical of consumers below the poverty line;the perceived quality of the good

Question

Quizplus · Accepted Answer

The Bureau of Labor Statistics compiles a "basket of goods" that is typical of what the average urban consumer buys. Each price in the index is weighted by the quantity of the good that goes into the basket, representing the importance or relative expenditure of each item to consumers.

To Compute the CPI,the Bureau of Labor Statistics (BLS)compiles a "Basket