Economics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 16

There are many different types of market baskets that economists measure. For example, the market basket for consumers-called the Consumer Price Index-tracks the prices associated with the typical consumer's purchases of goods and services. The Producer Price Index tracks the prices that firms receive when selling their goods and services. A third type of market basket is the Home Price Index, which tracks the value of residential housing. In what scenarios would each of these market baskets be useful?