Question

A. Which of the following items might you include in the basket of goods and services for the average student? The basket should include:______

a. cafeteria meals.
b. washing machines.
c. textbooks.
d. pens.

b. One of the primary expenses in a student’s basket is tuition, which is also included in the BLS calculation of the CPI. Consider the portion of total expenditure tuition accounts for in a student's budget versus a typical household's budget. Given that difference, the value of the student's basket over time has likely changed ________than the CPI.

Answer 1

A. a. cafeteria meals.

c. textbooks.

d. pens.

B. More

Step-by-step explanation:

Students use textbooks and pens at school to study and take down notes. They also go to the cafeteria at meal times to eat. A student does not directly need a washing machine to be a student so the options are cafeteria meals, textbooks and pens.

Overtime, tuition fees have ballooned and are now much higher than they used to be. Students therefore spend a significant amount of their budget on tuition as opposed to Households. It can therefore be said that student's basket overtime has likely changes more than the CPI.