Which of the Following Categories Is Included in the RPI

question 5

Multiple Choice

Which of the following categories is included in the RPI measure of inflation but not the CPI?

• A) Council tax
• B) Transport costs
• C) Recreation and culture
• D) Restaurants and hotels

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Definitions:

Deadweight Loss

The lost economic efficiency when the equitable or allocatively efficient outcome is not achieved, often due to taxes, subsidies, or monopolies.

Excise Tax

A tax imposed on specific goods, services, or activities, usually to discourage their use or to raise revenue.

Elasticities

Measurements of how changing one economic variable affects others, such as how quantity demanded will change as a result of price changes.

Subsidy Benefit

Government-provided support to aid businesses, individuals, or sectors of the economy through financial help.