Table 5.14 The table above reports the nominal average hourly wage and the consumer price index for 1956 and 2012.
-Refer to Table 5.14.The real average hourly earnings for 1956 in 2002 dollars equals
A)$0.22.
B)$10.70.
C)$13.02.
D)$21.88.
E)$25.32.

Question

Table 5.14  The table above reports the nominal average hourly wage and the consumer price index for 1956 and 2012.
-Refer to Table 5.14.The real average hourly earnings for 1956 in 2002 dollars equals
A)$0.22. 
B)$10.70. 
C)$13.02. 
D)$21.88. 
E)$25.32.

Quizplus · Accepted Answer

The real average hourly earnings for 1956 in 2002 dollars would be calculated by adjusting the nominal earnings of 1956 for inflation to reflect 2002's dollar value. The correct answer, $10.70, likely reflects this adjustment using specific economic data or a consumer price index (CPI) to convert 1956 earnings into 2002 dollars, providing a way to compare the purchasing power of wages across different years.

Table 514 the Table Above Reports the Nominal Average Hourly