The Basket Used to Calculate the Consumer Price Index (CPI)

question 242

Multiple Choice

The basket used to calculate the Consumer Price Index (CPI) assumes that over time consumers

• A) buy more products whose prices fall.
• B) buy fewer products whose prices rise.
• C) buy newly introduced products.
• D) buy the same quantities of products no matter how prices change.
• E) pay the same prices for products no matter how quantities change.

---

Definitions:

Data Structure

An efficient method of organizing, managing, and storing data in a computer so it can be accessed and modified efficiently.

Single-Dimensional Array

An array consisting of a sequence of elements in a single row or column, accessed by a single index.

One-Dimensional Array

A linear list of elements that are accessed with a single index, storing elements of the same data type.