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You Are Offered Two Jobs,one in Chicago Paying $67,000 and One

Question 5

Multiple Choice

You are offered two jobs,one in Chicago paying $67,000 and one in Dallas paying $58,000.The price index in Chicago is 110.8,and in Dallas it is 91.5.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 Chicago because the real wage is higher there.
C) definitely take the job in Dallas because the real wage is higher there.
D) suffer from money illusion and be conflicted.
E) suffer from menu costs and be conflicted.

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