Table 13-8
The table above reports the nominal average hourly earnings in private industry and the consumer price index for 1965 and 2010.
-Refer to Table 13-8.The real average hourly earnings for 1965 in 1982-1984 dollars equal
A)$1.28.
B)$6.49.
C)$8.28.
D)$15.45.

Question

Table 13-8
  The table above reports the nominal average hourly earnings in private industry and the consumer price index for 1965 and 2010.
-Refer to Table 13-8.The real average hourly earnings for 1965 in 1982-1984 dollars equal
A)$1.28. 
B)$6.49. 
C)$8.28. 
D)$15.45.

Quizplus · Accepted Answer

To calculate the real average hourly earnings in 1982-1984 dollars for 1965, we need to use the formula:
Real earnings = (Nominal earnings / Price index) x 100
Substituting the values from the table, we get:
Real earnings for 1965 = (2.82 / 31.5) x 100 = 8.28 (in 1982-1984 dollars)
Therefore, the correct answer is C.

Table 13-8 the Table Above Reports the Nominal Average Hourly