Suppose the consumer price index (CPI) accurately measures inflation: At the end of 2020, the U.S. federal minimum wagewas $7.25 an hour, and the CPI was 260. In 1983, the minimum wage was $3.35, and the CPI was 100. Ceteris paribus, itfollows that value of the minimum wage in 1983, as measured in 2020 dollars was:O a. $1.28O b. $8.71O c. $12.16O d. $18.85Next pagege

Answer: Option b Explanation: The following formula will be used to find the value of wages in 1983…

Answered: Suppose the consumer price index (CPI)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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ning Time: 09 minutes, 39 seconds. tion Completion Status: O E. frictional, cyclical, and structural unemployment. QUESTION 6 Suppose an individual earned a salary of $12,000 in 1970. If the CPI was 38.8 in 1970 and 258.8 in 2020, then the value of this individual's salary in 2020 dollars is approximately O A. $80,041. O B. $71,456. OC. 593,381. O D.$1,799. O E. $60,398. QUESTION7 If real GDP remains constant we know for sure that O A. output has declined. O B. output has risen but prices have remained constant. O C. prices have remained constant. O D. output has remained constant. O E. output has risen. QUESTION 8 All of the following factors have contributed to the rapid expansion of international trade since the 1980s, except for O A. progress in communications. O B. trade agreements. Click Save and Submit to save and submit. Click Save All Answers to save all answers.
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Suppose banks require a real interest rate of 6 percent. If they expect inflation to be 3 percent, what is the nominal interest rate? Multiple Choice O 9 percent O 3 percent 18 percent 2 percent $ % alo5 54 #3 72 M E R & 28 7 田 8 #8 6 T Y U 1 t
An economy has 95 million people employed and an unemployment rate of 5 percent. There are 1.5 million marginally attached workers and 0.5 million of the marginally attached workers are discouraged. How many people are unemployed? 3 tries left The number unemployed is O A. A. 5.5 million B. 7.5 million O c. C. 5.0 million O D. 6.5 million
Suppose the money wage rate rises from $40.00 to $46.74 an hour and consumer prices rises by 14 percent. What would be the effect in the labor market? We would expect people to try to find a job and employed people to want to work hours. O A. fewer; shorter B. fewer; longer C. the same number of; the same number of D. more; longer The would A. quantity of labor supplied; increase O B. supply of labor; increase O C. supply of labor; decrease O D. quantity of labor supplied; decrease Click to select your answer. MacBook Air DII DD こ. 吕0 F9 F7 F8 F6 esc F4 F5 F2 F3 F1 & 2$ ! 5 6 8 9 1 2 3 4
The number of the employed in a country is 55 million; the number of the unemployed is 5 million and those not in the labor force is 40 million. The labor force participation rate in this country is 40% O 50% O 20% O 60% A consumer price index of 100 in 2020 with a base year of 2019 would mean that the cost of the market basket fell (in terms of its opportunity cost) from the cost of the market basket in 2019 O fell 100% from the cost of the market basket in 2019 O rose 100% from the cost of the market basket in 2019 O rose 0% from the cost of the market basket in 2019
A dozen eggs cost $1.22 in January 1990 and $2.33 in January 2016. The average wage for workers in private industries was $10.02 per hour in January 1990 and $21.33 in January 2016. By what percentage did the price of a dozen eggs rise? 48% 91% 111% By what percentage did the wage rise? O 21% 94% 113% In order to earn enough to buy a dozen eggs, a worker had to work. Workers' purchasing power in terms of eggs minutes in January 1990 and between 1990 and 2016. minutes in January 2016.
If the cost of health and personal care increases by 20 percet, then, other things the same, how much is the CPI likely to increase? 11 Select one: O a. by about 1 percent O b. by about 2 percent O c. by about 4 percent O d. by about 3 percent

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