Question

Which of the following demonstrates real value?

My new skis cost about as much as it did for all of us going to that concert on Saturday night.

In-state college tuition costs me $23,000 for the first year

When all of us pool our money, we can buy a computer for my mom.

My dad needs to work all month to be able to pay for the huge dent in the side of the car.

When we sell the house, we will have enough to pay for four years of college.

Answer 1

The answer is In-state college tuition would cost $23000 for the first year. Real value is a nominal value that is then being adjusted for inflation. The nominal value such as the gross domestic product and income is being adjusted to get the real value.