Question

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

Answer 1

Answer:

a. education; b. housing; c. transportation; d. food and beverages; e. recreation; f. medical care

Explanation:

CPI or consumer price index represents the costs of basket of goods and services across the country on monthly basis and includes the following categories:

1. housing
2. apparel
3. transportation
4. education and communication
5. other goods and services
6. recreation
7. medical care
8. food and beverages

a. Education

b. housing

c. transportation

d. food and beverages

e. recreation

f. medical care