The Take-Home Pay of an Employee Working in an Urban

question 41

Multiple Choice

The take-home pay of an employee working in an urban area for 1993 and 2007 are as follows. If the CPI rose from 159 in 1993 to 210 in 2007 (1982-84 = 100) ,what was the "real" take-home pay of the employee in 2007?

• A)$5,000
• B)$15,000
• C)$113,200
• D)$53,904

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Definitions:

Act Utilitarianism

A form of utilitarianism that evaluates the morality of actions based on the amount of happiness they produce in the outcome.

Ethical Theory

Philosophical thinking about morality, encompassing principles and guidelines that dictate what is right and wrong behavior.

Ethical Relativism

The theory that moral values and judgments are ultimately dependent on the cultural, societal, or personal context.

Payroll Tax

Taxes imposed on employers and/or employees, calculated as a percentage of the salaries that employers pay their staff.