Asked by Divya Patel on May 14, 2024
Verified
Which of the following goods is NOT a likely component of the Consumer Price Index?
A) Hamburger
B) 87 octane gasoline
C) Structural steel beams
D) Movie tickets
Structural Steel Beams
Steel shapes used in construction that are designed to bear heavy loads and form the skeleton of buildings and bridges.
Consumer Price Index
An index measuring the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
- Identify the differences between real and nominal prices, and comprehend the importance of price indices in the study of economics.
Verified Answer
LM
Lauren MullinsMay 18, 2024
Final Answer :
C
Explanation :
The Consumer Price Index measures changes in the prices of goods and services purchased by households, so it is unlikely to include structural steel beams, which are primarily used in construction and not purchased by households as a consumer good. The other options, hamburger, 87 octane gasoline, and movie tickets, are all goods that are commonly purchased by households and would likely be components of the Consumer Price Index.
Learning Objectives
- Identify the differences between real and nominal prices, and comprehend the importance of price indices in the study of economics.
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