Question

Babe ruth, the famous baseball player, earned $80,000 in 1931. today, the best baseball players can earn more than 400 times as much as babe ruth earned in 1931. however, prices have also risen since 1931. we can conclude that

a. the best baseball players today are about 400 times better off than babe ruth was in 1931.
b. because prices have also risen, the standard of living of baseball stars hasn't changed since 1931.
c. one cannot make judgments about changes in the standard of living based on changes in prices and changes in incomes.
d. one cannot determine whether baseball stars today enjoy a higher standard of living than babe ruth did in 1931 without additional information regarding increases in prices since 1931.

Answer 1

one cannot determine whether baseball stars today enjoy a higher standard of living than Babe Ruth did in 1931 without additional information regarding increases in prices since 1931.

Step-by-step explanation

one cannot determine whether baseball stars today enjoy a higher standard of living than Babe Ruth did in 1931 without additional information regarding increases in prices since 1931.This is because the standard of living includes the factors of income which includes inflation, years of schooling, GDP per capita and government deficits.Standard of living generally refers to the level of wealth, comfort, material goods and necessities available to a certain socioeconomic class, in a certain geographic area.

Answer 2

the answer is the option d. one cannot determine whether baseball stars today enjoy a higher standard of living than babe ruth did in 1931 without additional information regarding increases in prices since 1931.
It is important to point out that although a baseball player can win at present 300 or 400 times what Babe Ruth earned in 1931, we must remember that at that time there was a serious deterioration of the economy on a world scale, by the so-called Great Depression that originated in the United States, after the stock market crash of October 29, 1929, so Babe Ruth's salary in that period could represent a purchasing power as equal to or even greater than the current players' salaries, but without economic indicators of both periods, it is not possible to make an objective comparison of both situations.