ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Key Takeaways. A basket of goods represents consumer spending and is used to track changes in the prices of consumer goods and services over time. The Bureau of Labor Statistics tracks 94, 000 prices monthly to assess inflation for more than 200 categories of products and services.

Detailed explanation-2: -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-3: -For example, the major categories you might see included in a market basket are housing, education, recreation, food and beverage, apparel, transportation, health care, and other goods and services.

Detailed explanation-4: -The CPI market basket represents the consumer goods and services purchased by urban households. The Bureau of Labor Statistics (BLS) then groups these goods and services into eight categories. The groups will serve as labels for each of the boxes that will contain examples of items in each category.