Refer to the information provided in Table 15.2 below to answer the questions that follow.
Table 15.2
-Refer to Table 15.2. What is the real wage rate in 2017 using 2015 as the base year?
A) $4.21
B) $6.65
C) $7.37
D) $15.20

Question

Refer to the information provided in Table 15.2 below to answer the questions that follow.
Table 15.2 
-Refer to Table 15.2. What is the real wage rate in 2017 using 2015 as the base year?
A) $4.21 
B) $6.65 
C) $7.37 
D) $15.20

Quizplus · Accepted Answer

To calculate the real wage rate, we need to use the formula: 
Real wage rate = (Nominal wage rate / Consumer Price Index) x 100

Using the base year of 2015, we can see that the CPI for 2015 is 100.

So for 2017, we have: 
Nominal wage rate = $8.00
CPI = 112

Real wage rate = ($8.00 / 1.12) x 100 = $7.37

Therefore, the answer is C.

Refer to the Information Provided in Table 15