I the Consumer Price Index Measures the Change in Prices

question 68

Multiple Choice

i. The Consumer Price Index measures the change in prices of a fixed market basket of goods and
Services from one period to another.
ii. The CPI is not just one index, but includes a large number of groups, subgroups and selected
Items, such as a food index, a transportation index and a shelter index.
iii. The Consumer Price Index is based on more than 600 separate goods and services used by
Most urban and rural families.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

---

Definitions:

Relative Luminance

A measure of the amount of light that is emitted, reflected, transmitted, or viewed from a surface, adjusted for its perceived brightness to the human eye.

Brightness Constancy

The human visual system's ability to perceive objects as having a constant brightness even when the lighting conditions change.

Moon Illusion

An optical illusion in which the moon seems bigger when observed near the horizon compared to when viewed higher in the sky.

Retinal Disparity

The slight difference in the visual images that reach each eye, leading to depth perception.