One Way the Consumer Price Index (CPI) Differs from the GDP

question 45

Multiple Choice

One way the consumer price index (CPI) differs from the GDP chain price index is that the CPI:

• A) uses current year quantities of goods and services.
• B) includes separate market baskets of goods and services for both base and current years.
• C) includes only goods and services bought by typical urban consumers.
• D) is bias free.

---

Definitions:

Safe

Protected from or not exposed to danger or risk; not likely to be harmed or lost.

Environment

The sum of all external conditions and influences affecting the life and development of organisms, including natural and built surroundings.

Soil Erosion

The wearing away of the top layer of soil by wind, water, or human activity, leading to reduced soil fertility and the degradation of land quality.

Composting

A process of recycling organic waste into a nutrient-rich soil amendment.