If the weekly income from 1974 to 2015 increased from $80 to $290,but the number of standard baskets of goods that the weekly income could purchase decreased from 1.70 to 1.23 from 1974 to 2015,then we can conclude that
A) prices decreased faster than the wage increase between 1974 and 2015.
B) prices increased faster than the wage increase between 1974 and 2015.
C) prices increased slower than the wage increase between 1974 and 2015.
D) prices decreased slower than the wage increase between 1974 and 2015.

Question

Quizplus · Accepted Answer

The increase in weekly income from $80 to $290 is a significant increase by 362.5%. However, the decrease in the number of standard baskets of goods that the weekly income could purchase from 1.70 to 1.23 shows that prices have also increased significantly. The decrease in the purchasing power of the weekly income indicates that prices have increased faster than the wage increase. Therefore, the best choice is B.

If the Weekly Income from 1974 to 2015 Increased from $80