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:

Bags Of Pretzels

Not a standard economic key term, often used as an example in contextual scenarios about goods.

Market

A market is any arrangement that allows buyers and sellers to exchange goods, services, and information. It determines the price and allocation of resources through the interactions of supply and demand.

Normal Good

a good for which demand increases when consumer income rises, and falls when consumer income decreases.

Equilibrium Price

The market price at which the quantity demanded of a good equals the quantity supplied, leading to market balance.