Two candidates for governor of a state differ in their accounts of the state's economy during the incumbent's term. The incumbent claims that during his four year term the economy has improved, citing a rise in the median household income from $33,000 to $34,500. The challenger claims that the economy has declined, citing that the buying power of families in the state has declined during the four years. Which of the following best explains how both candidates can be right?

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anthougo anthougo · Answer 1 · 2021-10-05T09:17:32+02:00

The two candidates, who differ in their accounts of the state's economy, can be right if B. Though the median household income increased ...

The argument of the incumbent governor is that the rise in the median household income in the state by $1,500 (5% increase) shows that the state's economy has improved during his first tenure.

The challenger is evaluating the purchasing power of families in the state, which according to him, has declined more because of the increase in the prices of goods and services, perhaps above 5%.

A. It is not possible ...

C. The incumbent is ...

D. Only those in the middle ...

Data and Calculations:

Median household income 4 years before = $33,000

Median household income 4 years after = $34,500

Change (increase) in household income after 4 years = $1,500 ($34,500 - $33,000)

Thus, the only true statement for the two candidates to be right in their arguments is statement B.

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