How are the weights on the various goods and services in the CPI basket determined?

Question

BlackTom AI · Accepted Answer

To understand how CPI weights are determined, we need to consider the method used to reflect consumer purchases. 
Option 1: 'a survey of households is conducted to determine how much of each good and service a typical consumer purchases' — This is the correct approach: government statistical agencies use household expenditure surveys to estimate the share of total spending allocated to each good and service, and these shares set the weights in the CPI basket. The reasoning is grounded in measuring actual expenditures to reflect what consumers buy rather than what they say they would buy in theory. 
Option 2: 'a survey of politicians is conducted to determine how much of each good and service a typical consumer purchases' — Politicians are not used to determine consumer spending patterns for the CPI; their views do not represent household purchasing behavior, so this would not yield valid weights.
Option 3: 'a survey of public servants is conducted to determine how much of each good and service a typical consumer purchases' — Public servants’ preferences or incomes do not define overall consumer expenditure patterns, so relying on this survey would distort the basket weights.
Option 4: 'a survey of economists is conducted to determine how much of each good and service a typical consumer purchases' — Economists’ opinions about typical purchasing patterns do not substitute for actual observed household expenditures; while economists contribute to methodology, the weights come from empirical expenditure data, not expert survey alone.

How are the weights on the various goods and services in the CPI basket determined?单项选择题

类似问题

Suppose a basket of goods and services has been selected to calculate the CPI and Year 1 has been selected as the base year. In Year 1, the basket's cost was $50; in Year 2, the basket's cost was $52; and in Year 3, the basket's cost was $55. The value of the CPI in Year 3 was

If the current year CPI is 140, then the price level has increased 40 percent since the base year.

The CPI for 2008 is computed by dividing the price of the basket of goods and services in 2008 by the price of the basket of goods and services in the base year, then multiplying by 100.

One problem with the consumer price index stems from the fact that, over time, consumers tend to buy larger quantities of goods that have become relatively less expensive and smaller quantities of goods that have become relatively more expensive. This problem is called[Fill in the blank]

In the CPI, goods and services are weighted according to[Fill in the blank]

The consumer price index is used to[Fill in the blank]

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单