This Table Shows the Price-Level Adjustment as Compared to the United

question 109

Multiple Choice

This table shows the price-level adjustment as compared to the United States. According to the information given in the table shown, if someone makes $40,000 in the U.S., what would his salary need to be in Mexico to maintain the same standard of living?

• A) $60,606
• B) $26,400
• C) $40,000
• D) $13,600

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Definitions:

Poverty Threshold

The essential level of earnings required to live a decent life in a certain country.

Wage Earner's

Individuals whose income is derived primarily from their employment salary or wages.

Family Composition

The makeup or structure of a family, including the number of members, their relationships to each other, and their roles within the family unit.

Mean Household Income

The average income per household within a specified geographic location, calculated by dividing the total income of all households by the number of households.