Two of the challenging factors faced by the BLS when computing the consumer price index are:
A) new goods and better-quality goods.
B) new goods and inferior goods.
C) used goods and better-quality goods.
D) used goods and inferior goods.

Question

Quizplus · Accepted Answer

The BLS faces the challenging task of accounting for new goods and better-quality goods when computing the consumer price index. As new goods are introduced, they may not have comparable prices to the goods they are replacing, and therefore may result in a change in the inflation rate. Similarly, better-quality goods may have higher prices but also provide better value to consumers, which can also impact inflation calculations.

Two of the Challenging Factors Faced by the BLS When