A price index, such as a Consumer Price Index (CPI), is a measure of the average change over time in the prices paid by consumers for a basket of consumer goods and services. The base year index is typically set to 100. The current price index (base 1960) is nearly 330. This means that compared to the base year 1960 (index 100), the current index is 330.The ratio of the current index to the base index indicates how many times the price level has changed. Current index / Base index = 330 / 100 = the price level in the base year (1960).A price index does not mean that the price of every single item has increased by the same factor, nor does it refer to just any "certain selected items" without considering how they are combined. It represents an average change. The average used in price indices is typically a weighted average (or weighted mean), where the weights reflect the importance or expenditure share of each item in the typical consumer's budget.Option A is incorrect because the index represents an average of a specific basket, not all items in the economy, and the current cost is 3.3 times, not 3.3 times more. Option B is partially correct by mentioning "certain selected items", but the phrase "gone up to 3.3 times" can be misinterpreted. It's the overall index (average) that is 3.3 times the base, not necessarily each item. Option C accurately describes what a price index represents: the weighted mean of prices of a specific basket of items. An index of 330 relative to a base of 100 indeed means this weighted mean has increased 3.3 times. Option D is incorrect as a price index is based on a basket of multiple goods and services, not just the price of a single commodity like gold.