GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1.consumer preferences
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2.market baskets
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3.consumer behavior
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4.none of the above
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Detailed explanation-1: -market basket (or bundle): List specific quantities of one or more goods. Completeness: Preferences are assumed to be complete. In other words, consumers can compare and rank all possible baskets.
Detailed explanation-2: -The three largest components of the CPI are housing, transportation, and food/beverages in that order.
Detailed explanation-3: -If the two bundles provide the same level of satisfaction to the customer, we say that the customer is indifferent between the two bundles. The indifference curve is a curve that shows different consumption bundles that all provide the same amount of utility to the customer.
Detailed explanation-4: -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.