Which of the following statements is true about the consumer price index (cpi):
A.It measures cost of representative basket of goods at the level of first significant commercial transaction
B.It measure of the average prices paid by consumers for all goods and services
C.It is used to measure the standard of living in an economy
D.It measures the average prices paid by consumers for a fixed basket of goods services
E. None of the above
Which of the following statements is true about the consumer price index (cpi):
A.It measures cost of representative basket of goods at the level of first significant commercial transaction
B.It measure of the average prices paid by consumers for all goods and services
C.It is used to measure the standard of living in an economy
D.It measures the average prices paid by consumers for a fixed basket of goods services
E. None of the above
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Table 24-7. The table below applies to an economy with only two goods â hamburgers and hot dogs. The fixed basket consists of 4 hamburgers and 8 hot dogs.
Year | Price of hamburgers | Price of hot dogs |
2009 | $5 | $3 |
2010 | 5.50 | 3.30 |
2011 | 5.61 | 3.63 |
Refer to Table 24-7. Between 2009 and 2011, the cost of living increased by
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The CPI is more commonly used as a gauge of inflation than the GDP deflator is because
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