Minimum Wage and Inflation Analysis

The video tutorial explores the relationship between minimum wage and inflation from 1978 to 2009. It begins by introducing the problem and explaining the concept of percent change. The instructor calculates the percent change in minimum wage and inflation using historical data, demonstrating the mathematical process involved. The results show that the minimum wage did not keep up with inflation, highlighting the importance of understanding economic trends. The tutorial concludes with a discussion on the implications of these findings and the importance of education and skill development for better pay.

What is the main focus of the problem discussed in the video?

• Calculating the average wage in 2009

• Determining the highest inflation rate in history

• Analyzing the stock market trends

• Comparing minimum wage and inflation rates from 1978 to 2009

What is the formula used to calculate the percent change?

• New number minus old number divided by old number

• New number plus old number divided by old number

• Old number minus new number divided by new number

• Old number divided by new number

What was the minimum wage in 2009?

• $6.55

• $5.15

• $7.25

• $2.65

How do you convert a decimal to a percentage?

• Multiply by 10

• Move the decimal point two places to the right

• Move the decimal point two places to the left

• Divide by 10

What was the percent change in minimum wage from 1978 to 2009?

• 174%

• 200%

• 150%

• 229%

What was the CPI value in 1978?

• 100.0

• 150.3

• 214.5

• 65.2

What was the percent change in inflation from 1978 to 2009?

• 174%

• 200%

• 150%

• 229%

Did the minimum wage keep up with inflation from 1978 to 2009?

• Yes, it exceeded inflation

• No, it did not keep up

• No, it was lower than inflation

• Yes, it matched inflation

What is one reason for increasing the minimum wage?

• To decrease inflation

• To match inflation rates

• To reduce taxes

• To increase the stock market

What should individuals do to earn a better pay rate?

• Rely on minimum wage increases

• Become educated and skilled

• Work fewer hours

• Stay in lower-skilled jobs