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The Consumer Price Index is not considered a complete “cost of living” index. The CPI does...

The Consumer Price Index is not considered a complete “cost of living” index. The CPI does NOT include which of the following items (there may be more than one correct answer):

A. Sales taxes

B. Imported goods

C. Cost of housing

D. Stock market prices

E. Cost of business machinery

F. Personal income taxes

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Answer #1

Ans) Things that are included in CPI are categorized into eight categories ÷

  • Food and beverages
  • Housing
  • Apparel
  • Transportation
  • Medical care
  • Recreation
  • Education and communication
  • Other goods and services
  • Taxes like sales tax and excise tax
  • House rents are included

It excludes ÷

  • Income and social security tax.
  • Investment items, for eg- stocks, bonds, real estate and life insurance
  • Cost of buying house is not included

Ans÷ stock market prices, cost of business machinery and income tax (D,E,F)

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