In the CPI, goods and services are weighted according to[Fill in the blank]

Question

BlackTom AI · Accepted Answer

Consider the purpose of the Consumer Price Index (CPI) weights: they reflect the relative importance of each good or service in the average consumer's spending.
Option a: 'the extent to which each good or service is regarded by the government as a necessity.' This is not how CPI weights are determined; government judgments about necessities do not set the weights, which are based on actual spending patterns, not official classifications.
Option b: 'how much consumers buy of each good or service.' This is correct. CPI weights are derived from observed consumer expenditures to capture the share of spending devoted to each item, ensuring the index mirrors typical buying behavior.
Option c: 'the number of firms that produce and sell each good or service.' The count of firms has no direct role in CPI weighting; quantity or market structure does not drive the expenditure shares used for the index.
Option d: 'how long a market has existed for each good or service.' The longevity of a market is unrelated to CPI weights, which rely on spending shares rather than historical market presence.

In the CPI, goods and services are weighted according to[Fill in the blank]

查看解析

登录即可查看完整答案

类似问题

How are the weights on the various goods and services in the CPI basket determined?

Suppose a basket of goods and services has been selected to calculate the CPI and Year 1 has been selected as the base year. In Year 1, the basket's cost was $50; in Year 2, the basket's cost was $52; and in Year 3, the basket's cost was $55. The value of the CPI in Year 3 was

If the current year CPI is 140, then the price level has increased 40 percent since the base year.

The CPI for 2008 is computed by dividing the price of the basket of goods and services in 2008 by the price of the basket of goods and services in the base year, then multiplying by 100.

One problem with the consumer price index stems from the fact that, over time, consumers tend to buy larger quantities of goods that have become relatively less expensive and smaller quantities of goods that have become relatively more expensive. This problem is called[Fill in the blank]

The consumer price index is used to[Fill in the blank]

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单