Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 24.2, Problem 2QQ
To determine
The calculation of present worth of paycheck.
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Q)General Electric paid its workers $5 a day in 1914. If the consumer price index was 10 in 1914 and 230 in 2021, how much is the GE paycheck worth in 2021 dollars?
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General Electric paid its workers $5 a day in 1914. If the consumer price index was 10 in 1914 and 230 in 2021, how much is the GE paycheck worth in 2021 dollars?
Suppose your earn 3% wage 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 standard of living improve ?
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Principles of Economics, 7th Edition (MindTap Course List)
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- For Questions 13 and 14, Consider that Kim is a Nurse at a hospital in Atlanta and in 2010 she made an annual salary of $30,000. She has gotten several performance raises and one promotion over the years and in 2019 she earned $46,000 for the year. The Price Index representing her buying power in 2010 was 100 and in 2019 it is 164. Kim has asked you as her private economist to tell her whether or not she is better off now or worse off now than in 2010. What is the approximate value of her buying power now expressed in 2010 dollars? Question 13 options: $46,000 $18,000 $28,000 $36,000arrow_forwardA 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% 62% 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.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_forward
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