ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The term market basket refers to a bundle or group of products that can be indicators of the overall performance of a specific industry, sector, or market segment. The most common technical indicator used to determine the same is known as the Consumer Price Index (CPI).

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: -When it comes to Consumer Price Index, a “Basket of Goods” is a collection of hundreds of commonly purchased goods that represent the average American’s spending habits. Here is more information on what it contains and how it relates to the Consumer Price Index (CPI).

Detailed explanation-4: -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-5: -In economics, a market basket is an imaginary basket containing a standard set of goods and services commonly purchased by consumers used to track changes in the cost of living for different groups.