In 2015, many unskilled workers in the united states earned the federal minimum wage of $7.25 per hour. by contrast, average earnings in 2015 were about $23 per hour, and certain highly skilled professionals, such as doctors and lawyers, earned $100 or more per hour. instructions: in parts a and c, round your answers to 2 decimal places. in parts b and d, enter your answers as whole numbers.

a. if we assume that wage differences are caused solely by differences in productivity, how many times more productive was the average worker than a worker being paid the federal minimum wage

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Business

Patterson

29 December, 12:57

In 2015, many unskilled workers in the united states earned the federal minimum wage of $7.25 per hour. by contrast, average earnings in 2015 were about $23 per hour, and certain highly skilled professionals, such as doctors and lawyers, earned $100 or more per hour. instructions: in parts a and c, round your answers to 2 decimal places. in parts b and d, enter your answers as whole numbers.

a. if we assume that wage differences are caused solely by differences in productivity, how many times more productive was the average worker than a worker being paid the federal minimum wage

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Simpson · Answer 1

As wage differences are exclusively due to changes in productivity in the present example we can conclude how many times more productive one cluster is relative to another by getting the ratio of wages.

So the formula is:

This suggests average worker is 3.17 times more industrious than a minimum wage worker ( = $23 / $7.25).

The high wage worker is 13.79 more industrious than the minimum wage worker ( = $100 / $7.25)