Iggie Took a University Teaching Job as an Assistant Professor

question 105

Multiple Choice

Iggie took a university teaching job as an assistant professor in 1974 at a salary of $10,000. By 2003, she had been promoted to full professor, with a salary of $50,000. If the price index was 50 in 1974 and 180 in 2003, then what is Iggie's 2003 salary in 1974 dollars?

• A)$13,888.89
• B)$40,000
• C)$65,000
• D)$180,000

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Definitions:

All-Natural Ice Cream Industry

a segment of the ice cream market focusing on products made from natural ingredients without artificial additives.

Whole Quantities

Amounts or volumes that are complete or entire, without fractions or decimals.

Profit-Maximizing Output

The level of production at which a firm achieves the maximum possible profit, determined by the point where marginal cost equals marginal revenue.

Market Price

The rate at which goods or services can presently be bought or sold within the marketplace.