Author Question: Suppose we expect consumer prices to increase by about 30 percent between 2010 and 2020, and the ... (Read 72 times)

vHAUNG6011 · **on:** Jul 1, 2018

Suppose we expect consumer prices to increase by about 30 percent between 2010 and 2020, and the minimum wage was 7.25 per hour in 2010. What should be the minimum wage in 2020 if it is set to maintain the same purchasing power as in 2010?

A) 7.25
B) 7.55
C) 9.42
D) none of the above.

Question 2

Jim left his previous job as a sales manager and started his own sales consulting business. He previously earned 70,000 per year, but he now pays himself 25,000 per year while he is building the new business.

What is the economic cost of the time he contributes to the new business? A) 25,000 per year
B) zero
C) 70,000 per year
D) 45,000 per year