Question

Eight major groups of goods and services are included in the Consumer Price Index (CPI):

1. Food and Beverages (breakfast cereal, milk, coffee, chicken, wine, full-service meals, snacks)

2. Housing (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture)

3. Apparel (men's, women's, kid's clothes, jewelry)

4. Transportation (vehicles, airline tickets, gas, vehicle insurance)

5. Medical Care (prescription drugs, medical supplies, doctor's services, eyeglasses and eye care, hospital services)

6. Recreation (T.V., toys, pets and pet products, sports equipment, admissions)

7. Education and Communication (school tuition, postage, phone services, computers and accessories)

8. Other Goods and Services (tobacco and accessories, haircuts and other personal services, funeral expenses)

Using the list of eight groups of goods and services, determine which major group of the CPI the following item belongs to.

New eyeglasses.

This is in the ____________________ category.

Answer 1

New eyeglasses belong to the Medical Care category of the Consumer Price Index (CPI).

Step-by-step explanation:

Based on the information provided, new eyeglasses would belong to the Medical Care category of the Consumer Price Index (CPI).

This category includes items such as prescription drugs, medical supplies, doctor's services, eyeglasses, and eye care, as well as hospital services. Since eyeglasses fall under the category of eye care, they would be classified as part of the Medical Care group.