If the 1989 Salary in 2009 Dollars Is $147,951, How

question 51

Multiple Choice

If the 1989 salary in 2009 dollars is $147,951, how do we interpret this?

• A) The salary earned in 1989 could have purchased the same amount of goods as $147,951 could buy in 2009.
• B) It would take $147,951 in 2009 to buy the same amount of goods that was purchased in 1989 with $85,529.
• C) Someone earning $85,529 in 1989 would be as well off if he were earning $147,951 in 2009.
• D) All of these interpretations are correct.

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Definitions:

Break Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain for the business.

Variable Costs

Costs that vary directly with the level of production or business activity, such as materials, labor, and overhead expenses.

Break-Even Point

The point at which total costs and total revenue are equal, meaning no net loss or gain, and the business is not making a profit but is also not losing money.

Variable Costs

Costs that vary depending on how much is produced or sold.