Question

The market basket is _____________.

a. another term for the CPI.
b. a term used to define consumers in a given market.
c. a representative collection of goods and services.
d. a continuous rise in the price of goods or services combined with the reduced value of money.

Answer 1

c. a representative collection of goods and services.

Step-by-step explanation:

The market basket acts as a representative collection of goods available to all consumers. This is for economists to do analyzes such as calculating inflation and consumer welfare. For example, if a representative basket cost $ 100 in 2018, but in 2019 it costs $ 110, that means inflation, as the same products now cost more, and consumers' purchasing power declined, because in 2018 they had to spend only $ 100 to buy that basket of products, but now you have to spend $ 110. On the contrary, if the price of the basket of goods decreases over time, it is a sign that consumers have been better off, because before they spent $ 100 and now spend less, that is, there would be increased purchasing power. This is also a sign that there has been economic deflation, which is the continuing and widespread fall in price levels.

Answer 2

The market basket is a representative collection of goods and services. The correct option among all the options that are given in the question is the third option or option "c". The other options can be easily negated. I hope that this is the answer that has actually come to your great help.