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.

Instant oatmeal.

This is in the ___________ category.

Answer 1

Instant oatmeal is categorized under the Food and Beverages category of the Consumer Price Index.

Step-by-step explanation:

Instant oatmeal belongs to the Food and Beverages category in the Consumer Price Index (CPI). This category includes items such as breakfast cereal, milk, coffee, and snacks, among others. The CPI is an important measure that tracks changes over time in the price level of consumer goods and services purchased by households. The Food and Beverages category plays a significant role in the CPI, representing the costs associated with nutritional and dietary needs of consumers.