I the Consumer Price Index Measures the Change in Prices

Multiple Choice

i. The Consumer Price Index measures the change in prices of a fixed market basket of goods and
Services from one period to another.
ii. The CPI is not just one index, but includes a large number of groups, subgroups and selected
Items, such as a food index, a transportation index and a shelter index.
iii. The Consumer Price Index is based on more than 600 separate goods and services used by
Most urban and rural families.

A) (i) , (ii) , and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii) .
C) (i) and (iii) are correct statements but not (ii) .
D) (ii) and (iii) are correct statements but not (i) .
E) (i) , (ii) , and (iii) are all false statements.