If Your Salary Was $50,000 Last Year, and This Year

question 97

Multiple Choice

If your salary was $50,000 last year, and this year you receive a cost-of-living increase tied to the consumer price index (CPI) , what will your salary be this year assuming the CPI has risen from 110 to 114?

• A) $49,114
• B) $50,114
• C) $50,300
• D) $51,818

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Definitions:

Consumers

Individuals or organizations that use economic goods and services generated within the economy, directly affecting demand trends and market dynamics.

Corporate Taxes

Taxes levied by governments on the income or profit of corporations and businesses.

Profits

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Firms

Business organizations involved in the production and sale of goods and services.