You are offered two jobs,one in Richmond,Virginia,paying $67,000,and one in San Diego,California,paying $79,000.The price index in Richmond is 104.5; in San Diego it is 132.3.If real wages are the only consideration,then you would
A) be indifferent between the two jobs because the real wages would be about the same (within 2 percent) .
B) definitely take the job in Richmond because the real wage is higher there.
C) definitely take the job in San Diego because the real wage is higher there.
D) likely take the job in Richmond because there is a Federal Reserve bank there and it would control inflation in the area.
E) likely take the job in San Diego,because better weather is directly correlated to real wages.
Correct Answer:
Verified
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