If the weekly income from 1974 to 2011 increased from $80 to $290,but the number of standard baskets of goods that the weekly income decreased from 1.70 to 1.29 in 2011,then we can conclude that:
A)prices decreased faster than the wage increase between 1974 and 2011.
B)prices increased faster than the wage increase between 1974 and 2011.
C)prices increased slower than the wage increase between 1974 and 2011.
D)prices decreased slower than the wage increase between 1974 and 2011.

Question

Quizplus · Accepted Answer

The weekly income increased from $80 to $290 between 1974 and 2011, which is a significant increase. However, the number of standard baskets of goods that the weekly income can purchase decreased from 1.70 to 1.29, which means that prices increased faster than the wage increase. Therefore, we can conclude that prices increased faster than the wage increase between 1974 and 2011.

If the Weekly Income from 1974 to 2011 Increased from $80