2.8.1: Preparation 2.8
- Page ID
- 148730
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)The following information will be used in the next collaboration.
The United States has a federal minimum wage. This means that there is a law that requires employers to pay employees a minimum amount. Many states also have their own minimum wage laws that require a higher wage than the federal law. The minimum wage started in 1938 as part of a law that protected the rights of workers in many ways. The minimum wage in 1938 was set at $0.25 per hour.25
Since 1938, Congress has increased the minimum wage many times to account for inflation. Inflation is when prices increase over time. Maybe you have heard stories from older people about how a cup of coffee used to cost a dime or a gallon of gasoline was less than a dollar. Prices for these items have increased due to inflation. Deflation is when prices decrease over time.
When deciding if the minimum wage should be increased, people often talk about the purchasing power of the wage. In Lesson 2.8, you will answer the question: Did the minimum wage in 1938 have more purchasing power than the minimum wage in 2021? You will start by thinking about the specific example of buying a movie ticket for the following questions.
(1) The minimum wage in 1997 was $5.15 per hour. The minimum wage in 2021 was $7.25 per hour.
(a) What was the absolute change in the minimum wage from 1997 to 2021?
(b) What was the relative change in the minimum wage from 1997 to 2021? Round to the nearest tenth of one percent.
(2) The average price of a movie ticket in 1997 was $4.59.26 Which statement is correct?
(i) In 1997, a person earning minimum wage had to work less than an hour to earn enough for a movie ticket.
(ii) In 1997, a person earning minimum wage had to work more than an hour to earn enough for a movie ticket.
(3) The average price of a movie ticket in 2021 was $9.57.27 Which statement is correct? Be prepared to explain your answer in class.
(i) In 2021, a person earning minimum wage had to work less than an hour to earn enough for a movie ticket.
(ii) In 2021, a person earning minimum wage had to work more than an hour to earn enough for a movie ticket.
In Collaboration 2.8, you will be discussing the concept of purchasing power and adjusting for inflation.
Here are some examples of such adjustments:
- Social Security benefits: https://www.ssa.gov/cola/
- VA benefits: https://www.benefits.va.gov/compensation/rates-index.asp
After Preparation 2.8 (survey)
You should be able to do the following things for the next collaboration. Rate how confident you are on a scale of 1–5 (1 = not confident and 5 = very confident).
Before beginning Collaboration 2.8, you should understand the concepts and demonstrate the skills listed below.
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Skill or Concept: I can … |
Rating from 1 to 5 |
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calculate and interpret relative change. |
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understand the minimum wage. |
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