Question

Eight major groups of goods and services are included in the Consumer Price Index (CPI):

1. Food and Beverages (breakfast cereal, milk, coffee, chicken, wine, full-service meals, snacks)

2. Housing (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture)

3. Apparel (men's, women's, kid's clothes, jewelry)

4. Transportation (vehicles, airline tickets, gas, vehicle insurance)

5. Medical Care (prescription drugs, medical supplies, doctor's services, eyeglasses and eye care, hospital services)

6. Recreation (T.V., toys, pets and pet products, sports equipment, admissions)

7. Education and Communication (school tuition, postage, phone services, computers and accessories)

8. Other Goods and Services (tobacco and accessories, haircuts and other personal services, funeral expenses)

Using the list of eight groups of goods and services, determine which major group of the CPI the following item belongs to.

Flea collar for your pet.

This is in the _______________________ category.

Answer 1

A flea collar for a pet falls under the 'Recreation' category of the Consumer Price Index (CPI).

Step-by-step explanation:

Using the list of eight groups of goods and services included in the Consumer Price Index (CPI), the item 'flea collar for your pet' belongs to the Recreation category. The Recreation category includes items such as T.V., toys, pets and pet products, sports equipment, and admissions. Even though pet care might seem to be a necessity, within the structure of the CPI, items relating to pets and associated products are generally classified under Recreation.