(Table 3: Average Hourly Wages in Four Companies, 2017 and 2018)

question 43

Multiple Choice

(Table 3: Average Hourly Wages in Four Companies, 2017 and 2018) Table 3 provides the average hourly wage paid by each of four companies for two years. The inflation rate during 2018 was 3%. Workers at which company are suffering from the money illusion if they think that they are better off financially in 2018 than they were in 2017? $\begin{array}{c}\text { Table 3: Average Hourly Wages in Four Companies, } 2017 \text { and } 2018\\\begin{array}{|l|c|c|c|c|}\hline & \text { Company A } & \text { Company B } & \text { Company C } & \text { Company D } \\\hline \begin{array}{l}\text { Average hourly wage paid in } \\2017\end{array} & \$ 10 & \$ 20 & \$ 30 & \$ 40 \\\hline \begin{array}{l}\text { Average hourly wage paid in } \\2018\end{array} & \$ 10.35 & \$ 20.84 & \$ 30.75 & \$ 41.28 \\\hline\end{array}\end{array}$

• A) company A
• B) company B
• C) company C
• D) company D

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Definitions:

IRS Method

The approach or procedure specified by the Internal Revenue Service for calculating or reporting tax-related information.

Net Rental Income

The income received from rental properties after deducting expenses such as mortgage interest, property taxes, maintenance, and management fees.

Security Deposit

Money paid upfront as security against damage or non-payment, commonly associated with rental agreements, to be returned or applied as per agreement terms.

Rental Income

Income received from renting out a property, such as a house or an apartment.