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Which of the following is not one of the categories of which the CPI market basket consists?

a. housing
b. food
c. education
d. industry
Please select the best answer from the choices provided
OA
OB
O
D
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1 Answer

5 votes

Answer:

d. industry

Step-by-step explanation:

The Consumer Price Index (CPI) market basket is a collection of goods and services used to measure changes in the cost of living over time. The CPI market basket typically consists of items that people typically buy and consume in their daily lives. These items are grouped into several categories to represent different aspects of a household's expenses. These categories are used to calculate the overall CPI and determine the rate of inflation or deflation in an economy.

The four main categories typically included in the CPI market basket are:

a. **Housing:** This category includes the cost of housing, such as rent or mortgage payments, utilities, property taxes, and maintenance costs. Housing is a significant expense for most households.

b. **Food:** The food category covers the cost of food items purchased at grocery stores and restaurants. It includes various food products and beverages that people consume regularly.

c. **Education:** This category encompasses the cost of education-related expenses, such as tuition, school supplies, and other educational services. Education expenses are included because they represent a significant portion of household spending for families with school-aged children.

d. **Industry:** The term "industry" is not typically considered one of the primary categories in the CPI market basket. Instead, the CPI focuses on consumer spending categories related to daily living expenses and does not include a broad "industry" category.

Therefore, option **d. industry** is not one of the standard categories within the CPI market basket, and the correct answer is d.

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