Questions: Vegetables are purchased by a restaurant. Which major group of the CPI does this purchase belong to?
It is not included in any CPI category.
Food and beverage
Recreation
Other goods and services
Transcript text: Vegetables are purchased by a restaurant. Which major group of the CPI does this purchase belong to?
It is not included in any CPI category.
Food and beverage
Recreation
Other goods and services
Solution
The answer is the second one (or B): Food and beverage.
Explanation for each option:
It is not included in any CPI category: This is incorrect because vegetables are a common consumer good and are included in the Consumer Price Index (CPI) under a specific category.
Food and beverage: This is correct. Vegetables fall under the "Food and beverage" category in the CPI, which tracks the prices of food items and beverages purchased by consumers.
Recreation: This is incorrect because recreation includes items and services related to leisure activities, not food items.
Other goods and services: This is incorrect because "Other goods and services" typically includes items that do not fit into the main categories like personal care products, but not food items.
Summary:
Vegetables purchased by a restaurant belong to the "Food and beverage" category of the CPI.