Question

For each of the following items, indicate to which major group of the CPI the item belongs: a. Tuition payments to your university: (Click to select) b. A new desk for your dorm room or apartment: (Click to select) c. An airline ticket to Florida to be used during spring break: (Click to select) d. A 12-pack of beer to be used during spring break: (Click to select) e. Tickets to a local concert: (Click to select) f. A late night visit to the emergency room: (Click to select)

Answer 1

Consumer Price Index is used as an indicator of inflation and is calculated by averaging price changes in a basket of household items including services provided to households overtime.

These items fall under groups and the major ones are;

• Medicare
• Recreation
• Transportation
• Housing
• Food and Beverages
• Education and Communication

a. Tuition payments to your university: Education and Communication

b. A new desk for your dorm room or apartment: Housing

c. An airline ticket to Florida to be used during spring break: Transportation

d. A 12-pack of beer to be used during spring break: Food and Beverages

e. Tickets to a local concert: Recreation

f. A late night visit to the emergency room: Medicare