PRC-2 · Chapter 9 · Question 10 of 60
Which specific statistical index tracks the cost of a fixed basket of goods and services typically purchased by an average household?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Consumer Price Index (CPI)
Explanation
The Consumer Price Index (CPI) is the standard measure used globally to track changes in the retail prices of a representative 'basket' of consumer goods and services, acting as a primary gauge for inflation.
More Indices MCQs
- Q12What does a Quantity Index measure?
- Q13If the Laspeyres index for a dataset is 120 and the Paasche index is 125, what is the approximate Fisher's Ideal Index?
- Q14A fundamental characteristic of the Laspeyres Index is that it tends to:
- Q15What is the primary formula representing a Value Index?
- Q16What is a defining characteristic of the Laspeyres price index regarding its denominator?