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:

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by the parties involved in order to be enforceable.

Lifetime Employment

Lifetime employment is a concept where an employee works for a single employer for the majority of their career, often found in some cultures.

Statute of Frauds

A legal principle requiring certain types of contracts to be written and signed to be enforceable, such as contracts for the sale of real estate or agreements not to be performed within a year.

Sale of Goods

The sale of goods refers to the transaction between a seller and a buyer where specific goods are transferred from the seller to the buyer for a price.