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In Cost of Living Index, the items are usually classified under
AIncome, Tax, Savings, Investments (typical)
BFood, Travel, Entertainment, Loans (typical)
CFood, Clothing, Fuel & Light, Housing, Miscellaneous
DInvestments, Loans, Insurance, Cash (typical)
Answer & Solution
Correct answer: C. Food, Clothing, Fuel & Light, Housing, Miscellaneous
1. The Consumer Price (Cost of Living) Index measures change in retail prices a typical household pays.
2. Standard groups are: Food, Clothing & Footwear, Fuel & Light, Housing and Miscellaneous.
3. Weights for each group reflect family expenditure patterns.
4. Hence (A) is the standard grouping.
_Source: Maharashtra Balbharati Std XII Mathematics & Statistics (Commerce), Ch 3 "Index Numbers", §3.4 ¶§3.4_
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