What Is the Basket of Goods Used to Construct the CPI

question 93

Multiple Choice

What is the basket of goods used to construct the CPI?

• A) a random sample of all goods and services produced in the economy
• B) the goods and services typically bought by consumers, according to Statistics Canada surveys
• C) goods and services weighted by the ratio of expenditures on them relative to the consumption component of GDP
• D) the average price of goods and services in each major category of consumer expenditures

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Definitions:

Enterprise Success

The achievement of desired business outcomes, such as profitability, growth, market share, or innovation, by a company or business enterprise.

Soviet Union

A former federal socialist state in the northern Eurasia that existed from 1922 to 1991, composed of multiple republics, with Moscow as its capital.

Quantity of Output

The total amount of goods or services produced by a firm or industry during a specific time period.

Surplus Supply

A situation where the quantity of a good or service supplied in a market exceeds the quantity demanded at the current price.