Purchasing Power Drives the Decision Steps:

• Assess gross income: Lower in Germany suggests initially less appealing salary.
• Assess net income: Higher in Germany indicates better take-home pay after taxes.
• Assess cost of living: Lower in Germany allows net income to stretch further.
• Calculate real income: Higher net divided by lower costs yields superior purchasing power in Germany.

Why D is correct:

• Purchasing power formula (net income / cost of living index) is maximized with higher net income and lower costs, enabling greater real consumption.

Why the others are wrong:

• A: Higher costs likely offset higher incomes, reducing real purchasing power.
• B: Higher costs counteract the benefit of higher net income, making outcome uncertain.
• C: Lower net income dominates, even with lower costs, leading to worse overall position.

Final answer: D