ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -The Consumer Price Index (CPI) is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services.

Detailed explanation-3: -A basket of goods represents consumer spending and is used to track changes in the prices of consumer goods and services over time.

Detailed explanation-4: -The cost of a market basket is used to determine the CPI index, which indicates how much prices have changed over time. To calculate the cost of a CPI market basket, multiply basket prices for each category by the predetermined weight and sum the results.