Suppose the minimum wage was $0.25 per hour in 1938 and the CPI in that year was 11.5
If the CPI in 1990 was 130.7, what is the real value of the 1938 minimum wage in terms of 1990 dollars? The real value of the 1990 minimum wage in terms of 1990 dollars is $4.25. Has the real value of the minimum wage declined since 1938?
W(1938 ) = 130.7($0.25 )/11.5 = $2.84 , so the real value of the minimum wage has increased from 1938 to 1990.
You might also like to view...
Environmental pollution is accounted for in ________.
A. DI B. GDP C. PI D. None of these
A system of managed floating exchange rates is
A) a system in which governments may attempt to moderate exchange rate movements without keeping exchange rates rigidly fixed. B) a system in which governments use flexible exchange rates. C) a system in which governments are forbidden from attempt to moderate exchange rate movements without keeping exchange rates rigidly fixed. D) a system in which governments need to reach a prior agreement among them before they may attempt to moderate exchange rate movements without keeping exchange rates rigidly fixed. E) a system in which governments use extensive fiscal policy to discourage exchange rate movements.
Mezzanine debt funds hold quite __________ assets issued by __________ companies
A) risky; small to midsized B) risky; large C) safe; small to midsized D) safe; large
Which region's agricultural system developed very differently from that of the rest of the nation?
A. the West B. the Midwest C. New England D. the South