The poor have demonstrated a marked ability to move out of poverty when economic opportunities improved

Your grandfather tells you that he earned $.50 per hour at his job when he was a boy in 1929

a. Given that the CPI was 17.1 in 1929 and 184.0 in 2003, how much would you have to make in 2003 to have the same real hourly wage? b. You made $5.50 an hour working during 2003 . Were you better off than your grandfather in terms of purchasing power? Explain. c. Your grandfather also tells you that a soda cost $.05 in 1929, and you know a soda cost $.55 in 2003 . You decide to use the price of a soda as the price index. How much would the 2003 "soda equivalent" of $.50 per hour in 1929 be?

Which of the following would be most likely to encourage capital formation in a less-developed country?

a. the expectation of sustained high inflation b. the expectation that property rights will be highly secure in the years ahead c. the imposition of high tariffs and other restraints limiting imports d. higher personal and corporate tax rates