Mark's wage contract specifies a $50,000 salary for the first year, and specifies a salary increase equal to the percentage increase in the CPI during the second year. The increase in the CPI during the year was 4.0%. If the CPI overstates inflation by 1.0% (that is, the actual price increase was 3% and not 4%), at the end of the first year Mark's salary increased by $ more than it would have without the upward bias.

$500

Explanation:

Data provided in the question

Salary for the first year = $50,000

CPI increase during the year = 4%

Overstated inflation = 1% i.e 5%

The computation of the increased in salary is shown below:

= Salary of the first year × inflation rate - salary of the first year × CPI increase during the year

= $50,000 × 5% - $50,000 × 4%

= $2,500 - $2,000

= $500

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.