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


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