What Is the Basket of Goods Used to Construct the CPI

question 57

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 least and the most expensive goods and services in each major category of consumer expenditures

---

Definitions:

Decrease In Cash

A reduction in the amount of cash a company holds, which may result from payments for expenses, investments, or debts.

Statement Of Income

A financial document that reports a company's financial performance over a specific period, showing revenues, expenses, and net income.

Statement Of Financial Position

Another term for a balance sheet, showing a company's assets, liabilities, and equity at a specific point in time.