A new iPod with 30 new features costs $100 more to produce and buy than does the previous version.The $100 price increase
A) is added to the inflation rate.
B) is not added to the inflation rate because consumer electronics are not part of the inflation rate.
C) is not added to the inflation rate because it represents an improvement in quality.
D) is divided by the additional benefits and then added to the inflation rate.

Question

Quizplus · Accepted Answer

Because it is an improvement in quality, the increase is not considered inflationary by the BLS.

A New IPod with 30 New Features Costs $100 More