A Worker Received $5 for a Daily Wage in 1930

question 70

Multiple Choice

A worker received $5 for a daily wage in 1930.What is the value of that wage today if the CPI was 17 in 1930 and is 230 today?

• A)37 cents
• B)$4.63
• C)$67.65
• D)$37.86

---

Definitions:

Unit Variable Cost

The cost that varies with each unit produced, including materials, labor, and other expenses directly tied to production volume.

Minimum Required Rate Of Return

This is the lowest acceptable return on an investment, determined by the investor's risk tolerance, inflation expectations, and the opportunity cost of capital.

Total Fixed Costs

The sum of all costs that do not change with the level of production or sales over a certain period, such as rent, salaries, and insurance.

Average Operating Assets

The average value of the assets used in the normal operations of a business, calculated over a specific period.