Question

In the basket of goods that is used to compute the consumer price index, which of the following categories of consumer spending is the largest? a. education & communication b. recreation c. medical care d. All of the above categories are about equal in magnitude.

Answer 1

Option (D).

Step-by-step explanation:

Consumer price index may be defined as the changes in the price level of the consumer services and goods of the house hold. Bureau of Economic Analysis calculate the consumer price index.

The consumer can spend large in the category of the communication and education. The recreation of the activites and the medical care are of the equal importance that the consumer will consider and can spend large amount in these categories. Education, communication, medical care and recreation are equally important that consumer will consider.

Thus, the correct answer is option (D).