Arlo is offered a job in Des Moines, where the CPI is 80, and a job in New York, where the CPI is 125 . Arlo's job offer in Des Moines is for $42,000 . How much does the New York job have to pay in order for the two salaries to represent the same purchasing power?
a. $42,000
b. $65,625
c. $68,880
d. $189,000
b
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Which of the following statements is not correct?
A. Total surplus is the sum of consumer and producer surplus. B. Deadweight loss is the net loss of both consumer and producer surplus resulting from underproduction or overproduction of a product. C. Deadweight loss is a measure of market inefficiency. D. Total surplus is maximized when the actual quantity supplied exceeds the equilibrium quantity.
The effect of higher wages on the individual supply of labor is ________ and the effect of higher wages on the market supply of labor is ________.
A. ambiguous; to increase the quantity supplied B. to increase the quantity supplied; ambiguous C. ambiguous; to decrease the quantity supplied D. to decrease the quantity supplied; ambiguous
Which of the following is NOT a function of the International Monetary Fund?
A. administer an international foreign exchange system B. serve as lender of last resort for national governments C. establish and administer each nation's fiscal and monetary policies D. establish the SDR system nations utilize to settle international payment obligations
The economy's current rate of interest is 10 percent and a firm has $10,000 of owner-invested capital. Its total revenue is $5000 and the firm's explicit costs are $3500. From this we know that this firm's
A. accounting profit is $1,500. B. accounting profit is $500. C. economic profit is $1,500. D. economic profit is $5,000.