ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A measure of prices of housing and rental cost all over the country
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An index of the cost of living for all U.S. Consumers
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An index determined by measuring the price of standard goods bought by consumers
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None of the above
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Detailed explanation-1: -A consumer price index (CPI) measures changes in the prices of goods and services that households consume. Such changes affect the real purchasing power of con-sumers’ incomes and their welfare.
Detailed explanation-2: -The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a representative basket of consumer goods and services. The CPI measures inflation as experienced by consumers in their day-to-day living expenses.
Detailed explanation-3: -The consumer price index (CPI) is a means to measure the weighted average cost of consumer bags of goods and services such as food, medical care, and transportation. It is evaluated by taking a cost change of each product in the prearranged bags of goods and averaging them.
Detailed explanation-4: -The Consumer Price Index or CPI is known as the index that is used to measure the level of retail inflation in an economy by taking into account the changes in price of the most commonly used goods and services by consumers.
