Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 24, Problem 7PA
Subpart (a):
To determine
Calculation of percentage rise in price.
Subpart (b):
To determine
Calculation of percentage rise in wage.
Subpart (c):
To determine
Calculation of time spends.
Subpart (d):
To determine
Changes in purchasing power of newspaper.
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Students have asked these similar questions
The New York Times cost $0.15 in 1970 and $2.00 in 2011. The average wage in manufacturing was $3.36 per hour in 1970 and $23.09 in 2011.By what percentage did the price of a newspaper rise?By what percentage did the wage rise?In each year, how many minutes did a worker have to work to earn enough to buy a newspaper?Did workers’ purchasing power in terms of newspapers rise or fall?
A dozen eggs cost $1.03 in December 1980 and $1.60 in December 2018. The average wage for workers in private industries was $7.13 per hour in December 1980 and $23.09 in December 2018.
By what percentage did the price of a dozen eggs rise?
36%
55%
57%
By what percentage did the wage rise?
32%
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224%
In order to earn enough to buy a dozen eggs, a worker had to work _______ minutes in December 1980 and_________ minutes in December 2018.
Workers' purchasing power in terms of eggs_________ between 1980 and 2018.
Cost of a dozen oranges wasRs80 in January 1980 and Rs.170 in January 2018. The average hourly wage for production and nonsupervisory workers was Rs.650 in January 1980 and Rs.2200 in January 2018.
By what percentage did the price of oranges rise?
By what percentage did the wage rise?
In each year, how many minutes did a worker have to work to earn enough to buy a dozen oranges?
Did workers’ purchasing power in terms of oranges rise or fall?
Chapter 24 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
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Similar questions
- A dozen eggs costs $o.88 in January 1980 and 2.11 in January 2015. The average wage for production workers was $7.58per hour in January 1980 and $19.64 in January 2015 By what percentage did the price of eggs rise? By what percentage did the wage rise? In each year, how many minutes did a worker have to work to earn enough to buy a dozen eggs? Did workers’ purchasing power in terms of eggs rise or fall?arrow_forwardThe New York Times newspaper cost $0.15 in 1970 and $0.75 in 2000. The average wage in manufacturing was $3.23 per hour in 1970 and $14.32 in 2000. Given what you know about the increases in the price of the newspaper and wages, what does this tell you about workers’ well-being (as measured by standard of living or purchasing power)?arrow_forwardA dozen eggs cost $0.88 in January 1980 and $2.11in January 2015. The average wage for productionworkers was $7.58 per hour in January 1980 and$19.64 in January 2015.a. By what percentage did the price of eggs rise?b. By what percentage did the wage rise?c. In each year, how many minutes did a workerhave to work to earn enough to buy adozen eggs?d. Did workers’ purchasing power in terms of eggsrise or fall?arrow_forward
- The value of land in Manhattan was around $150 billion in 2008. Imagine that it is 1626 and you are the economic advisor to the Dutch when they are considering whether to buy Manhattan from the Manhasset Indians. Further,assume that the relevant interest rate for calculating the present value is 4%per year. Would you advice the Dutch that a purchase price of $24 is a good deal or not? How would your answer change if the interest rate were 6%? And 8%? (Hint: for each interest rate,calculate the present value in 1626 of the land value as of 2008. Then compare that with the purchase price in 1626. For example, simplify by assuming that the owners collect no rents on the land. As an advanced further question,assume that the rent equals 2% of the value of the land each year.)arrow_forwardPrice of petrol was Rs. 60 per litre in 2015 and Rs. 100 per litre in 2021. The average wage in manufacturing was Rs. 240 per hour in 2015 and 300 in 2021. a. Did workers’ purchasing power in terms of petrol rise or fall?arrow_forwardIn the year 2000, the CPI was 172.2 and the GDP deflator was 78.7. In 2019, the CPI had risen to 258.4 and the GDP deflator to 112.5. a. How much did prices increase from 2000 to 2019 according to the CPI and how much according to the GDP deflator? Why is there a difference? b. If the price of a 12oz can of Coke was $1.25 in 2000 and the price was $1.75 in 2019, did the real price of Coke go up, down, or stay the same? Explain your answer.arrow_forward
- a)Suppose you earn a 3% wage increase from your employer. Then, the government releases economic data indicating the inflation rate is running at 5%. Are you better off? Based upon changes in your real wages, did your standards of living improve ? b) suppose you took out 20,000 in student loans at a fixed interest rate of 5%. Assume that after you graduate, inflation rises significantly as you are paying back your loans. Does this rise in inflation benefits you in paying back your student loans? Who hurt more from unexpected higher inflation, a borrower or a lender? c) in January 1980 the CPI stood at 77.8. By January 2006 the CPI was 198.3. By what percent have consumer prices increased over this period? Assume college graduates entering the job market in 1980 were being paid on average $1200 per month. Assume college graduates entering the job market in 2006 were being paid on average $3000 per month. Are the newer graduates paid more or less in real terms?arrow_forwardThe price of long-distance telephone service fell from 40 cents per minute in 1996 to 22 cents per minute in 1999, a 45-percent (18 cents/40 cents) decrease. Suppose that the Consumer Price Index increased by ten percent over this period. Did the real price of telephone service increase or decrease? by how much percent did it increase/decrease?arrow_forwardAre households primarily buyers or sellers in the goods and services market? In the labor market?arrow_forward
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