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

question 70

Multiple Choice

This table shows the price-level adjustment as compared to the United States. According to the table shown, if Bob is earning $30,000 in the United States and Bill is earning $40,000 in Mexico, what can be said about their standards of living?

• A) Bill is earning more in real terms than Bob.
• B) Bob is earning more in real terms than Bill.
• C) Bob and Bill are earning the same amount in real terms.
• D) Bob and Bill are earning the same amount in nominal terms.

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Definitions:

Stimulus Substitution

A theory in classical conditioning suggesting that the conditioned stimulus acts as a substitute for the unconditioned stimulus, eliciting the same response.

Classical Conditioning

An educational mechanism where the consistent pairing of two stimuli occurs; the response which initially is drawn by the second stimulus, in time, is drawn by the first stimulus alone.

Conditioned Stimulus

A previously neutral stimulus that, after being repeatedly associated with an unconditioned stimulus, evokes a conditioned response.

Conditioned Fear

A learned response to a previously neutral stimulus that has become associated with a frightful event or situation.