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?

Country: Price-level adjustment:
Australia -0.5
china .25
mexico .34
USA 0

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.

Answer: A

According to the information in the table shown, if someone were earning $50,000 in Australia, approximately what would she need to earn in the United States to enjoy the same standard of living?

Country: Price-level adjustment:
Australia -0.5
china .25
mexico .34
USA 0

According to the information in the table shown, if someone were earning $50,000 in Australia, approximately what would she need to earn in the United States to enjoy the same standard of living? 

A. $75,000

B. $33,333

C. $25,000

D. $37,500

Answer: B

According to the information in the table shown, if someone were earning $30,000 in the United States, approximately what would they have to earn in China to have the same standard of living?

Country: Price-level adjustment:
Australia -0.5
china .25
mexico .34
USA 0

According to the information in the table shown, if someone were earning $30,000 in the United States, approximately what would they have to earn in China to have the same standard of living? 

A. $40,000

B. $7,500

C. $22,500

D. $15,000




Answer: C

According to the information in the table shown, if someone were earning $20,000 in Mexico, approximately what would he need to earn in the United States to enjoy the same amount of goods and services?

Country: Price-level adjustment:
Australia -0.5
china .25
mexico .34
USA 0

According to the information in the table shown, if someone were earning $20,000 in Mexico, approximately what would he need to earn in the United States to enjoy the same amount of goods and services? 

A. $30,303

B. $35,000

C. $20,030

D. $15,000


Answer: A

The information in the table shown:

Country: Price-level adjustment:
Australia -0.5
china .25
mexico .34
USA 0

The information in the table shown: 

A. allows us to compare the standard of living in one country to another.

B. has been indexed to the United States.

C. shows that the typical good in Australia is more expensive than it is in the United States.

D. All of these statements are true.

Answer: D

According to the information in the table shown, if someone were to make $35,000, she would be able to buy more goods and services if she lived in:

This table shows the price-level adjustment as compared to the United States.

Country: Price-level adjustment:
Australia -0.5
china .25
mexico .34
USA 0

According to the information in the table shown, if someone were to make $35,000, she would be able to buy more goods and services if she lived in: 

A. Australia.

B. the United States.

C. Mexico.

D. China.

Answer: C

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?

This table shows the price-level adjustment as compared to the United States.

Country: Price-level adjustment:
Australia -0.5
china .25
mexico .34
USA 0

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

Answer: B