If Mustard Now Costs $0

question 115

Multiple Choice

If mustard now costs $0.75 when today's price index is 225,and if the price index in 1970 was 38,we would most accurately say that

• A) mustard cost about $4.44 in 1970.
• B) if mustard cost $0.10 in 1970,it was relatively cheap as an inflation-adjusted price.
• C) mustard cost about $0.20 in 1970.
• D) mustard's price would never increase at the same rate as inflation because it is a food item.
• E) ketchup would cost about $0.13 in 1970 because it typically costs about the same as mustard.

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Definitions:

Social Security Tax

Social Security Tax is a tax levied on both employers and employees to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

Medicare Tax

A federal tax deducted from an individual’s earnings to fund the Medicare program, typically as part of payroll taxes.

Time And A Half

The rate of pay that is 1.5 times the employee's regular hourly rate, often paid for overtime work.

Current Portion

The current portion usually refers to the segment of long-term debt or loan that is due to be paid within the next fiscal year.