Question

The basket of goods in the Consumer Price Index consists of about products; that is, several hundred specific products in over categories. broad-item 1) 200: 800 2) 80,000; 400 3) 80,000: 200 4) 800: 200

Answer 1

The Consumer Price Index basket of goods consists of about 80,000 products, which are specific examples of items in over 200 broad-item categories. Statisticians select these examples based on what people buy and where they shop to calculate the index.

Step-by-step explanation:

The basket of goods in the Consumer Price Index consists of about 80,000 products, which are several hundred specific products categorized into over 200 broad-item categories. Statisticians select specific examples of each item and look at their prices to calculate the Consumer Price Index. For example, when considering the 'foods and beverages' category, the Bureau of Labor Statistics (BLS) selects several hundred examples of breakfast cereal, such as the price of a 24-oz. box of a particular brand sold at a certain store, to reflect what people buy and where they shop.

Answer 2

The Consumer Price Index represents about 80,000 products across more than 200 categories, reflecting household spending patterns and helping measure inflation and cost of living.

Step-by-step explanation:

The basket of goods in the Consumer Price Index (CPI) is a collection of products used to measure inflation and the cost of living. The CPI consists of about 80,000 products that represent several hundred specific products across more than 200 broad-item categories. These products are selected by the U.S. Bureau of Labor Statistics (BLS) to represent the spending habits of households, as determined by the Consumer Expenditure Survey. For example, within the 'food and beverages' category, the BLS would choose several hundred examples of breakfast cereal to monitor price changes over time. Every year, approximately one-quarter of these products are rotated out to ensure the basket remains representative of current consumer spending patterns.