Eight cents earned in 1940 would have been able to buy goods and services worth how much today?

Question

Quizplus · Accepted Answer

The inflation rate from 1940 to 2021 is approximately 2,410%. Therefore, eight cents from 1940 would be equivalent to $1.92 today. However, the question asks how much goods and services eight cents could buy, not the equivalent value in dollars. According to the US Bureau of Labor Statistics, the average cost of goods and services in 1940 was approximately 10 times lower than today. Therefore, eight cents in 1940 would be able to buy goods and services worth approximately $0.80 in today's prices. However, since none of the answer choices are $0.80, the closest one is $1.00 (Choice C).

Eight Cents Earned in 1940 Would Have Been Able to Buy