Solve the Problem An Academic Computer Expert Is Leaving Boston to Work in 1999

question 11

Multiple Choice

Solve the problem.
-Part of the Housing Price Index for 1999 is given below: $$\begin{array} { l | c | c | c | c } \text { City } & \text { Palo Alto, CA } & \text { Sioux City, IA } & \text { Boston, MA } & \text { Spokane, WA } \\\hline \text { Index } & 365 & 47 & 182 & 78\end{array}$$ An academic computer expert is leaving Boston to work in the high tech area of Palo Alto. What should she expect to
Pay, to the nearest dollar, for a house comparable to her $310,000 Boston home?

• A)$621,703
• B)$492,000
• C)$154,575
• D)$675,000

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Definitions:

Lifetime Earnings

The total amount of money a person is expected to earn over the course of their career.

Marginal Cost

The charge incurred from the production of an extra unit of a product or service.

Ring Tones

Digital files used on mobile phones to indicate an incoming call or message.

Efficient Market

A market theory that suggests all available information is already reflected in stock prices, hence investments cannot consistently outperform the market.