Refer to the information provided in Table 30.2 below to answer the question(s) that follow.
Table 30.2
-Refer to Table 30.2. What is the real wage rate in 2017 using 2015 as the base year?
A) $4.21
B) $6.65
C) $7.37
D) $15.20

Question

Refer to the information provided in Table 30.2 below to answer the question(s) that follow.
Table 30.2 
-Refer to Table 30.2. What is the real wage rate in 2017 using 2015 as the base year?
A) $4.21 
B) $6.65 
C) $7.37 
D) $15.20

Quizplus · Accepted Answer

To calculate the real wage rate in 2017 using 2015 as the base year, we need to use the formula:
Real Wage Rate = (Nominal Wage Rate / Price Index) x 100
From the table, we can see that the price index in 2017 using 2015 as the base year is 158, and the nominal wage rate is $11.65. Plugging these values into the formula, we get:
Real Wage Rate = ($11.65 / 158) x 100 = $7.37 
Therefore, the best choice is (C).

Refer to the Information Provided in Table 30