If Average Nominal Income Was About $15,000 and the Price

question 156

Multiple Choice

If average nominal income was about $15,000 and the price level index was 118, then average real income would be about:

• A)$11,146
• B)$12,712
• C)$13,385
• D)$14,249

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Definitions:

Replacement Cost

The amount of money required to replace damaged or lost assets with new ones of the same or similar quality.

Coinsurance Clause

A provision in insurance policies that requires both the insurer and the insured to share the costs of claims according to a fixed percentage.

Fire Insurance Policy

A contract that provides financial compensation to the insured in case of fire damage to property or goods.

Destroyed

When something is damaged beyond repair or no longer exists in its original form.