Both Claudia and Javier are certified educators. Claudia makes $55,000 a year working as a teacher in a public high school in Chicago. Javier makes $40,000 working as a grade school teacher in a private school in Chicago. Which of the following is true?
A. Javier is clearly worse off than Claudia, because he earns $15,000 a year less.
B. Javier must be better off than Claudia if he is willing to take a job at $15,000 a year less than Claudia.
C. Even though income is an imperfect measure of well-being, Claudia and Javier must be equally well off because either is free to switch jobs.
D. From this information it cannot be determined who is better off because income is an imperfect measure of well-being.
Answer: D
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