Final answer:
The statement is false; new products include significant improvements or adaptations of existing products, as well as being introduced into the Consumer Price Index (CPI) after some time.
Step-by-step explanation:
The statement that new products are classified solely as innovations that have never been sold by any organization is False. While an innovation may refer to the initial appearance of an object or concept in society, new products can also include significant improvements or adaptations of existing products. For example, patents are issued not only for entirely new inventions but also for new and original designs of existing manufactured products, demonstrating a broader view of what constitutes a new product in the business and legal realms.
In terms of economic measurement, the basket of goods and services, such as those used in the Consumer Price Index (CPI), is periodically updated to include new products. However, this incorporation into the CPI basket can occur years after a product has been introduced to the market. Therefore, a new product isn't restricted solely to items that have never been seen before but includes significant advances or updates that are introduced into consumer markets.