Last Year Your Job at the University Cafeteria Paid You

question 38

Multiple Choice

Last year your job at the university cafeteria paid you $9 an hour and the price of a ten-minute long distance call to your girlfriend in California was $4. This year your cafeteria job pays $9.90 per hour and the ten-minute phone call now costs $4.10. You are clearly

• A) worse off because of inflation.
• B) worse off because the phone call is now relatively more expensive.
• C) better off because your wage rate went up.
• D) better off because the phone call now costs less work.