Twenty Years Ago, Dmitri Consumed Bread Which Cost Him 10

question 43

Multiple Choice

Twenty years ago, Dmitri consumed bread which cost him 10 kopeks a loaf and potatoes which cost him 20 kopeks a sack.With his income of 330 kopeks, he bought 9 loaves of bread and 12 sacks of potatoes.Today he has an income of 452 kopeks.Bread now costs him 22 kopeks a loaf and potatoes cost him 17 kopeks a sack.Assuming his preferences haven't changed (and the sizes of loaves and sacks haven't changed) , when was he better off?

• A)He was better off 20 years ago.
• B)He is better off today.
• C)He was equally well off in the two periods.
• D)From the information given here, we are unable to tell.
• E)None of the above.

Grasp the concept of human capital and its creation through education and training.

Recognize market imperfections and their impact on wage differentials within occupations.

Comprehend the role of investments in education on future earnings and productivity.

Acknowledge the influence of compensating differentials and labor mobility on wage variations.

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Definitions:

United States Government Securities

Financial instruments issued by the federal government to finance its budget deficits and raise capital, including Treasury bonds, notes, and bills.

Interest Rate

The rate at which a borrower pays interest to a lender for borrowing money.

Government Securities

Financial instruments issued by a government to borrow money from investors, including bonds, notes, and bills, usually considered low-risk investments.

Money Supply

The full volume of monetary holdings in an economy, including cash, coins, and the deposits in checking and saving accounts, at a given point.