1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alja [10]
3 years ago
6

Babe Ruth was a famous baseball player in the 1920s. He made a salary of $80,000 in 1930, which was considered outrageous becaus

e it was more than President Hoover made ("I had a better year than he did" was Ruth's supposed response). Nowadays, baseball players make much more than $80,000; the average major league salary in 2017 is $4.47 million per year, and the highest salary is $33 million for Clayton Kershaw. Some of the difference in salaries between Babe Ruth and today's players is due to inflation, and some of it is due to the fact that major league players make more in real terms today, because the market for baseball has grown over times and because players have gotten a higher share of the baseball pie over time because they have a powerful union How much of the difference is due to inflation? What is Babe Ruth's 1930 salary in today's dollars? You can use the same "index method" formula that we used to convert nominal GDP to real GDP in class. There are various websites that show the Consumer Price Index for various years.
Business
1 answer:
ArbitrLikvidat [17]3 years ago
4 0

Answer:

In real dollars, Babe Ruth's salary = $80,000 / 0.0645 (CPI 1930) = $1,240,000

Since Babe Ruth was the highest paid baseball player back then, if we compare his updated salary to Kershaw's salary, it represents only = $1,240,000 / $33,000,000 = 3.76%.

That means that most of the players' salary raise was due to other factors, not just inflation.

You might be interested in
What is one advantage of keeping your money in a savings account
balu736 [363]

The advantage of keeping your money in a savings account is that you can withdraw money whenever you want from your account.

<u>Explanation:</u>

Unlike the long term investments which are withdrawn only upon maturity.

The initial investment is also very low which is depending on the type of savings account., as compared to the long term investment.

People who need to frequently deposit or withdraw amount in their bank accounts prefers savings account.

It also deals with small amount withdrawn or deposit.

4 0
3 years ago
Which best describes how a recession develops as demand and production decrease
stellarik [79]

Answer:

The recession accelerates

Explanation:

Recession is an economic phase where economy is generally slow with low GDP and high inflation. In order to avoid recession it is important that market forces run and move on their own without government influence. If an economy is in recession, a decrease in demand and production will lead to more panic and shortage that will accelerate recession.

4 0
3 years ago
Read 2 more answers
Under which circumstance would someone need disability insurance?
Mandarinka [93]
You would need Disability insurance to protect one's income in the case that he or she becomes disabled.

So circumstances could include car crashes natraul events
8 0
2 years ago
Read 2 more answers
You are the financial manager of the Crossrail 1 project in London. The Board overseeing the project, acting on behalf of the UK
-BARSIC- [3]

Crossrail 1 project is about to start in London.

This project will require an initial investment of 9.4 billion. The project will start earning cash flows from year  and it will continue to year 60 which is useful life of the project.

The NPV for the project will be 7.36 which is positive. The correct answer is c.

The payback period for project is 13.04 years which is given in the option a so correct answer is a.

The internal rate of return for the project is b. 7.35 .

Based on our analytics and calculation since NPV is positive so cross rail project is beneficial. The board should consider launching this project.

Learn more at  brainly.com/question/24353321

8 0
2 years ago
Which of these is most likely to make you sleepy while you’re reading?
irinina [24]

answer options ? I cant answer without options lol



4 0
3 years ago
Other questions:
  • Diplomats typically work overseas. true or false
    5·2 answers
  • At the beginning of the meeting Kira does not properly lead the team during the ______ stage ofteam development. Therefore, the
    14·1 answer
  • if real gdp in 1995 was $4053.7 billion and nominal gdp in 1995 was $4220.3 billion, what was the value of the gdp deflator in 1
    6·1 answer
  • A company can learn a great deal by analyzing the degrees of brand loyalty. For example, ________ can show the firm which brands
    9·1 answer
  • A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For the current period, unproces
    11·1 answer
  • In a perfectly competitive market, all producers sell goods or services. Additionally, there are buyers and sellers. Because of
    13·2 answers
  • A company's general ledger shows a cash balance of $4,590. Comparing the company's cash records with the monthly bank statement
    9·1 answer
  • Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Life’s balance sh
    7·1 answer
  • The Saturday Evening Post was a niche magazine.<br><br> True<br> False
    10·2 answers
  • The CEO of Tough Mudder believes that teams in his company are not working as effectively as they could, and he is asking you fo
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!