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

Question

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

Quizplus · Accepted Answer

To find the equivalent income in the United States, we need to divide $20,000 by the price level index of Mexico (0.66). This gives us:

$20,000 / 0.66 = $30,303 (rounded to the nearest dollar)

Therefore, the person would need to earn approximately $30,303 in the United States to enjoy the same amount of goods and services. Choice A is the correct answer.

This Table Shows the Price-Level Adjustment as Compared to the United