Improvements in the Quality of Consumer Goods and Services Over

question 21

Multiple Choice

Improvements in the quality of consumer goods and services over time

• A) Cause the CPI to overstate actual inflation.
• B) Cause the CPI to understate actual inflation.
• C) Are accounted for in the CPI.
• D) Are insignificant and thus would not affect the CPI even if accounted for.

---

Definitions:

Atom

The smallest unit of a chemical element, consisting of a nucleus of protons and neutrons, surrounded by electrons.

Negative Charge

A type of electrical charge characterized by the presence of more electrons than protons in an atom or molecule.

Electron

A subatomic particle with a negative charge, fundamental to electricity and chemical bonding.

Light

Electromagnetic radiation that is visible to the human eye, with wavelengths approximately between 380 and 750 nanometers.