Franz Lives in a Country Where He and His Friends

question 1

Multiple Choice

Franz lives in a country where he and his friends have disposable income, in spite of the fact that their average income is $650 per month, because they have no debt and don't save money. Franz most likely lives in

• A) Brazil.
• B) Russia.
• C) India.
• D) China.
• E) Japan.

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Definitions:

Fixed-Wage Contract

An employment agreement where the salary does not change regardless of economic conditions or performance levels.

Inflation

The quickness at which the comprehensive level of goods and services' prices rises, corroding purchasing ability.

Real Income

The earning power of a person's money, considering the effects of inflation on purchasing power.

Wages

Payment to resource owners for their labor.