ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -This expenditure is called the poverty line. The basket of goods and services necessary to satisfy basic human needs is the Poverty Line Basket (PLB).

Detailed explanation-2: -What Is a Basket of Goods? The consumer price index (CPI), a common measure of inflation, measures the price change over time for a basket of goods and services. The basket is representative of consumer spending patterns, and the change in its price represents the rate of inflation faced by consumers as a whole.

Detailed explanation-3: -A market basket is a selected mix of goods and services that tracks the performance of a specific market or segment. A popular market basket is the Consumer Price Index (CPI), which provides an estimate for inflation based on the average change of price paid for a specific basket of goods and services over time.

Detailed explanation-4: -The Consumer Price Index (CPI) consists of a family of indexes that measure price change experienced by urban consumers. Specifically, the CPI measures the average change in price over time of a market basket of consumer goods and services. The market basket includes everything from food items to automobiles to rent.

Detailed explanation-5: -The producer price index, which measures the cost of a basket of goods and services bought by firms rather than consumers. This index is a leading indicator of future price increases for consumers.