Scenario 24-1 ​

question 140

Multiple Choice

Scenario 24-1
​
Sue Lewis was an accountant in 1943 and earned $12,000 that year. Her son is an accountant too and he earned $220,000 this year. Suppose the price index was 18.9 in 1943 and 20.5 in the current year.
-Refer to Scenario 24-1. Sue's 1943 income in current year dollars is

• A)$19,200.
• B)$246,000.
• C)$13,016.
• D)$238,624.

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Definitions:

Rival Consumption

A situation in which one person's consumption of a good or service diminishes others' ability to consume the same good or service.

Excludable

A characteristic of a good or service that allows its owner to prevent others from using it without permission.

Nonexcludable

A characteristic of a good or service whereby individuals cannot be effectively excluded from using it, often resulting in public goods.

Public Good

A product or service that is made available to all members of society, characterized by non-excludability and non-rivalry in consumption.