Which of the Following Statements Is True of the Consumer

Multiple Choice

Which of the following statements is true of the Consumer Price Index (CPI) ?

A) It uses the same basket of goods and services as the Producer Price Index.
B) The quantities of items in the current year are used for computing the weights for the index.
C) It is an unweighted price index used to measure inflation.
D) It is based on the prices paid by urban consumers for a representative basket of goods and services.