Question 6 (1 point) d Given that Mr. Jones earned $40,000 in 2010 and earns $60

Question

Question 6 (1 point) d Given that Mr. Jones earned $40,000 in 2010 and earns $60,000 today, The price index was 100 in 2010. Find the appropriate statement below that is both consistent with economic theory and the data given here Mr. Jones would have had an increase in his income if the price index had increased by more than his salary had. A) Bi Mr. Jones has had a decrease in his real income if the price index today ended up at Mr. Jones has had an increase in his real income if the price index today ended up at C) 130. As long as Mr. Jones' salary has risen he is guaranteed to have a higher real income no D) matter what the priced index turned out to be.

Explanation / Answer

6 c) Increase in real income if the price index ended up at 130

Salary can be adjusted for inflation but this is not always true

2 a) equal to the society's income

Includes wages earned, undistributed corporate profits, salaries, rent of land, bonus, social security contributions, earnings on public enterprises, interest on capital

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