Table 2.2 Workers in the Widget Industry
$$\begin{array} { l c r }
\hline \text { Year } & \text { Earnings } & \text { CPI } \
\hline 1966 & \$ 8,000 & 60 \
1976 & \$ 15,000 & 100 \
1986 & \$ 22,500 & 178 \
1996 & \$ 30,000 & 205 \
\hline
\end{array}$$
-According to Table 2.2,real earnings in the Widget Industry in 1986 were
A) $22,500.
B) $12,640.
C) $11,538.
D) $15,730.

Question

Table 2.2 Workers in the Widget Industry
 $$\begin{array} { l c r } 
\hline \text { Year } & \text { Earnings } & \text { CPI } \
\hline 1966 & \$ 8,000 & 60 \
1976 & \$ 15,000 & 100 \
1986 & \$ 22,500 & 178 \
1996 & \$ 30,000 & 205 \
\hline
\end{array}$$
-According to Table 2.2,real earnings in the Widget Industry in 1986 were
A) $22,500.
B) $12,640.
C) $11,538.
D) $15,730.

Quizplus · Accepted Answer

Real earnings are calculated by dividing earnings by the CPI and multiplying by 100. In 1986, real earnings were $22,500 / 178 * 100 = $12,640.

Table 22 Workers in the Widget Industry -According to Table 2