When Comparing the Buying Power of a Salary Offer of $52,000

question 2

Multiple Choice

When comparing the buying power of a salary offer of $52,000 in Boston with a $49,000 offer in Los Angeles,the Boston salary offer would buy ____ of goods and services in Los Angeles,assuming the index was 130.6 for Boston and 114.9 for Los Angeles.

• A) ​$55,695
• B) ​$45,748
• C) ​$43,109
• D) ​$59,105

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Definitions:

Government Subsidy

Financial support provided by a government to individuals, businesses, or other governmental entities to support economic activities deemed beneficial.

Product Supply

Product supply refers to the total quantity of a product that producers are willing and able to sell at a given price over a specific period of time.

Increases Product

Typically refers to strategies or actions taken to enhance the output or quality of goods and services produced by a company or economy.

Quantities Supplied

The amounts of a good or service that producers are willing and able to sell at various prices over a specified period of time.