A market basket includes specific goods and services in fixed quantities that roughly correspond to a typical consumer's spending. This allows economists to understand consumer spending patterns and inflation rates.

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A Market Basket

Question 4

Multiple Choice

A market basket:

A) looks like a really long shopping list for what firm's typically purchase.
B) includes specific goods and services in fixed quantities that roughly correspond to a typical consumer's spending.
C) only includes housing, food, and clothing, but not things like transportation.
D) is what an economist creates in order to understand purchasing trends of households and firms.

Correct Answer: