A Factory Worker Earned $10 an Hour in 1985,when the Consumer

question 34

Multiple Choice

A factory worker earned $10 an hour in 1985,when the consumer price index (CPI) was 63.0.The same factory worker was earning $15 an hour in 1990,when the CPI was 78.4.From 1985 to 1990,the factory worker's hourly real wage

• A) increased from $6.30 to $11.76.
• B) increased from $15.87 to $19.13.
• C) remained constant.
• D) increased from $10 to $15.
• E) decreased from $15 to $10.

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Definitions:

Income from Operations

The profit generated from a company's core business operations, excluding income from other sources and expenses unrelated to operations.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs associated with making or selling goods and services, showing profitability.

Activity Base

This term is associated with cost accounting and refers to a measure of activity that is used as a basis for allocating costs to cost objects.

Number of Miles

The number of miles refers to the total distance measured in miles, often used in contexts such as travel, transportation, and delivery services.