Answer and Explanation:
From the following given case or scenario, we can state that Ben in this particular case would select the best alternative during the rational decision making process. In this particular case, Ben tends to believe that he can easily cut the other expenses in order to maintain the budget for this year.
D I think is correct answer.
Answer:
D. Less; Less
Explanation:
Given that
CPI in 2005 = 1.68
Wage in 1972 = 7200
Wage in 2005 = 30,000
CPI in 1971 = 0.418
Therefore,
Real wage in 1972 = wage in 1972/CPI in 1972
= 7200/0.418
= $17,224.88
Real wage in 2005 = wage in 2005/CPI in 2005
= 30000/1.68
=$17,857.14
Thus, from the given data 1972 job paid LESS in nominal terms (7200 < 30000) and LESS in real terms (17,244.88 < 17,857.14) than the 2005 job.
