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,and in San Diego it is 132.3.If real wages are the only consideration,then:
A) you would be indifferent between the two jobs because the real wages would be about the same (within 2%) .
B) you would definitely take the job in Richmond because the real wage is higher there.
C) you would definitely take the job in San Diego because the real wage is higher there.
D) you would likely take the job in Richmond because there is a Federal Reserve bank there and it would control inflation in the area.
E) better weather is directly correlated to real wages; hence you would likely take the job in San Diego.
Correct Answer:
Verified
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