Final answer:
The correct answer to the question of which categories are included in the Consumer Price Index (CPI) is 'd. all of the above', as it includes food and beverages, recreation, medical care, and other categories.
Step-by-step explanation:
The categories included in the Consumer Price Index (CPI) are multiple and are designed to represent the average basket of goods and services purchased by households. When you are asked which categories are included in the CPI and given the options of food and beverages, recreation, and medical care, the correct answer is "d. all of the above."
This is because the CPI encompasses a broad range of categories, which include but are not limited to food and beverages, medical care, housing, apparel, and transportation. Recreation is also part of the "other goods and services" category, though it is not explicitly listed among the highlighted examples.
According to the Consumer Price Index website, statisticians calculate the CPI using around 80,000 prices of individual products, combining them into price indices for over 200 items, which are then combined into the overall CPI.