Table 5.18
-Refer to Table 5.18.Looking at the table above, the real average hourly wage in 2015 was
A)$19.13 in 2002 dollars.
B)$19.89 in 2002 dollars.
C)$26.30 in 2002 dollars.
D)$314.80 in 2002 dollars.
E)$423.93 in 2002 dollars.

Question

Table 5.18 
-Refer to Table 5.18.Looking at the table above, the real average hourly wage in 2015 was
A)$19.13 in 2002 dollars. 
B)$19.89 in 2002 dollars. 
C)$26.30 in 2002 dollars. 
D)$314.80 in 2002 dollars. 
E)$423.93 in 2002 dollars.

Quizplus · Accepted Answer

To find the real average hourly wage in 2015, we need to look at the row for 2015 and the column for the base year of 2002. The value in that cell is $21.79. However, we need to adjust for inflation, which is done by dividing by the price index ratio. The price index ratio for 2015 to 2002 is 1.0955. Dividing $21.79 by 1.0955 gives us $19.89, which is the real average hourly wage in 2015 in 2002 dollars. Therefore, the best choice is B.

Table 5.18 -Refer to Table 5.18.Looking at the Table Above, the Real