: Suppose we have two economieslet's call them Earth and Marsthat are identical, except that one begins with a stock of ideas that is twice as large as the other:

2. (Jones. Chapter 8, Question 1) TABLE 8.1 The Consumer Price Index, 1900-2015 (2015 = 100) Year CPI Year CPI 1900 3.43 1980 34.76 1930 7.05 1990 55.14 1950 10.16 2000 72.65 1960 12.50 2010 92.00 1970 16.39 2015 100.00 Source: Lawrence H. Officer and Samuel H. Williamson, "The Annual Consumer Price Index for the United States, 1774-2015," MeasuringWorth, www.measuringworth.com. Using the data on the consumer price index reported in Table 8.1, calculate the value in 2015 of the following items (refer to the nearest year in the table to do each calculation). a) Salary of a worker in 1900: $1000 per year b) Babe Ruth's salary in 1932: $80,000 c) A bottle of Coke or Pepsi in the late 1940s: one nickel d) A quarter pounder from Mcdonald's in 1972: 55 cents e) A movie ticket to see Star Wars in 1977: about $2.25 f) A pack of M&M candies in 1991: 45 cents