4
AssignmentMultiple Choice

Money

Question 4 • * HSA 26-27 Economics

Why is gasoline weighted more heavily than tomatoes in a calculation of the annual inflation rate in the United States?

Answer
A
Gasoline costs more to produce and purchase than tomatoes.
B
Gasoline is imported from other nations at a higher rate than tomatoes.
C
Americans purchase many more boxes of tomatoes than barrels of gasoline.
D
Americans spend more money on gasoline than tomatoes, on average.

Explanation

The inflation rate is calculated using a weighted basket of goods, with weights based on how much households typically spend on each item. Americans spend more money on gasoline than on tomatoes on average, so gasoline has a larger weight; its production cost or import rate does not determine the weight.

AI-written and checked against the verified answer.

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