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

Answer 1

D) one cannot determine whether baseball starts 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:

The value of money changes over time due to inflation and to be able to compare someone's salary back in 1931 with a current salary we would need information regarding how inflation affected the purchasing power of the US dollar. For example, back then a luxury new car costed less than $1,000. Since Babe Ruth was extremely famous and successful, his salary was probably huge compared to the average salaries of back then.