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Firms compensate workers with “benefits" in addition to wages and salaries. The most prominent benefit offered by many firms is health insurance. Suppose that in 2010, workers at one steel plant were paid $35 per hour and in addition received health benefits at the rate of $7 per hour. Also suppose that by 2020 workers at that plant were paid $36.75 per hour but received $31.50 in health insurance benefits. Instructions: Enter your answers rounded to 1 decimal place. a. By what percentage did total compensation (wages plus benefits) change at this plant from 2010 to 2020? Total compensation increased by %. What was the approximate average annual percentage change in total compensation?

Firms compensate workers with “benefits" in addition to wages and salaries. The most prominent benefit offered by many firms is health insurance. Suppose that in 2010, workers at one steel plant were paid $35 per hour and in addition received health benefits at the rate of $7 per hour. Also suppose that by 2020 workers at that plant were paid $36.75 per hour but received $31.50 in health insurance benefits. Instructions: Enter your answers rounded to 1 decimal place. a. By what percentage did total compensation (wages plus benefits) change at this plant from 2010 to 2020? Total compensation increased by %. What was the approximate average annual percentage change in total compensation?

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter17: Income, Poverty, And Health Care
Section: Chapter Questions
Problem 13P
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Firms compensate workers with "benefits" in addition to wages and salaries. The most prominent benefit offered by many firms is health insurance. Suppose that in 2010, workers at one steel plant were paid $35 per hour and in addition received health benefits at the rate of $7 per hour. Also suppose that by 2020 workers at that plant were paid $36.75 per hour but received $31.50 in health insurance benefits. Instructions: Enter your answers rounded to 1 decimal place. a. By what percentage did total compensation (wages plus benefits) change at this plant from 2010 to 2020? Total compensation increased by %. What was the approximate average annual percentage change in total compensation? % b. By what percentage did wages change at this plant from 2010 to 2020? Wages increased by %. What was the approximate average annual percentage change in wages? % c. If workers value a dollar of health benefits as much as they value a dollar of wages, by what total percentage will they feel that their incomes have risen over this time period? % What if they only consider wages when calculating their incomes? Incomes increased by %.
Transcribed Image Text:Firms compensate workers with "benefits" in addition to wages and salaries. The most prominent benefit offered by many firms is health insurance. Suppose that in 2010, workers at one steel plant were paid $35 per hour and in addition received health benefits at the rate of $7 per hour. Also suppose that by 2020 workers at that plant were paid $36.75 per hour but received $31.50 in health insurance benefits. Instructions: Enter your answers rounded to 1 decimal place. a. By what percentage did total compensation (wages plus benefits) change at this plant from 2010 to 2020? Total compensation increased by %. What was the approximate average annual percentage change in total compensation? % b. By what percentage did wages change at this plant from 2010 to 2020? Wages increased by %. What was the approximate average annual percentage change in wages? % c. If workers value a dollar of health benefits as much as they value a dollar of wages, by what total percentage will they feel that their incomes have risen over this time period? % What if they only consider wages when calculating their incomes? Incomes increased by %.
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