A Recent Report Indicated That the Average Annual Real Income

question 95

Multiple Choice

A recent report indicated that the average annual real income of agricultural workers declined by 2% between 1990 and 2000.If the CPI was 130 in 1990 and 169 in 2000,and the nominal income of agricultural workers was $35,000 in 2000,what was the average nominal income of agricultural workers in 1990?

• A) $20,710.
• B) $21,124.
• C) $26,923.
• D) $27,472.
• E) $35,700.

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Definitions:

Matching Principle

An accounting rule that dictates expenses should be recorded in the same period as the revenues they helped to generate.