Your Grandfather Tells You That He Earned $5,000/year in His

question 63

Multiple Choice

Your grandfather tells you that he earned $5,000/year in his first job in 1971.You earn $45,000/year in your first job in 2017.You know that average prices have risen steadily since 1961.You earn

• A)9 times as much as your grandfather in terms of real income.
• B)more than 9 times as much as your grandfather in terms of real income.
• C)less than 9 times as much as your grandfather in terms of real income.
• D)less than 9 times as much as your grandfather in terms of nominal income.
• E)more than 9 times as much as your grandfather in terms of nominal income.

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Definitions:

Ancient Chinese Civilization

One of the world’s earliest civilizations, noted for its significant contributions to writing, technology, philosophy, and governance originating thousands of years ago in the Yellow River Valley.

Rice Agriculture

The cultivation of rice as a primary food crop, involving various methods and practices depending on the geographical and environmental conditions.

Preindustrial Societies

Societies characterized by limited technological development, with economies based chiefly on subsistence farming or hunting and gathering.

Smaller Versions

Refers to reduced or miniaturized forms or editions of objects, concepts, or models, maintaining essential features or functions on a reduced scale.