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Iggie Took a University Teaching Job as an Assistant Professor

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Iggie took a university teaching job as an assistant professor in 1974 at a salary of $10,000. By 2003, she had been promoted to full professor, with a salary of $50,000. If the price index was 50 in 1974 and 180 in 2003, then what is Iggie's 1974 salary in 2003 dollars?


Definitions:

Private Goods

Goods that are excludable and rivalrous, meaning their consumption by one individual prevents another from consuming them.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone and one person's use does not diminish another's.

Government

The organized assembly or body of individuals leading a structured society, typically a nation.

Monopolies

Market structures characterized by a single seller facing no competition in offering a unique product or service.

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