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:

Alternative Cost

Also known as opportunity cost, it represents the benefit that is missed or given up when choosing one alternative over another.

Comparative Cost

Analyzing and comparing the costs of different business strategies or production methodologies to identify the most effective option.

Decision-Making Process

A series of steps a person or organization takes to come to a conclusion and take action, from identifying a problem to evaluating the outcomes of the chosen solution.

Clarify

To make a statement or situation less confused and more comprehensible.