

What does the consumer price index—the famous "housewife's shopping basket"—really measure?



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There are many ways to measure a nation's wealth. Calculating gross domestic product is one of them, but other, complementary indicators are also used.

What do these economic indicators we hear so much about in the media actually mean?

Statisticians often publish averages, reducing a snapshot of a country's socioeconomic situation to a single figure. But these averages often (always?) conceal stark disparities. One way to bring them into sharper focus is to quantify inequality as well.

Most developed countries have policies to help the poorest members of society. This raises the question of what we mean by "poor." Should the definition be absolute or relative? Should it refer only to income, or should assets and place of residence also be taken into account?
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