No peeking -- test your basic econ facts

In My Humble Opinion
21

I wonder what percentage of hourly workers are paid to duplicate the labor of others. :wink:

22

Interesting things happen, though, if you change the 5 in your URL to a 9.

It’s jumped to 2.9%. It should perhaps be noted that this figure neglects the possibility that some salaried workers may be making less than minimum wage if their wages were recalculated on an hourly basis. Significant, or am I just looking for excuses to get the actual number closer to my 5% estimate?

23

  1. What percentage of workers in the US earn only minimum wage? 30%

  2. As an overall average, what percentage of sales dollars are profits? 5%

  3. What is the current inflation rate? 3% per annum

oh boy oh boy. I wonder how well i did…

24

Not looking at other posts

I’d guess

  1. 10%
  2. 5%
  3. 1%.
25

I guess the real upshot of this quiz, so far, is that there are far fewer people making minimum wage than we all think.

When you ponder for a bit longer, that makes sense; even McDonald’s staff get a 15 cent raise each year.

26

Among those paid by the hour in 2007, 267,000 were reported as earning exactly the prevailing Federal minimum wage. Nearly 1.5 million were reported as earning wages below the minimum. Together, these 1.7 million workers with wages at or below the minimum made up 2.3 percent of all hourly-paid workers.

From the Characteristics of Minimum Wage Workers: 2007 report from the Bureau of Labor Statistics
Inflation data from August 2010 shows inflation at 1.15%

No idea where to search for #2. How would one even do so with the inclusion of private companies?

27

Well, it took a while, but I finally found someone that purports to give figures regarding overall profit margins:

Long-term, average profit margin for the 500 largest US companies is about 6.5%

28

Care to express your opinions on the matter? Were the actual numbers higher or lower than you originally thought? What have you noticed from the opinions posted here?

I’ve always been fascinated to see the difference between the expected and actual number of people earning minimum wage. And it’s always seemed like the policies are based on the perception (ranging in the 10-20%) rather than the reality.

Also interesting to see the shift from 2004 to 2009. Raising the Fed min wage from $5.15 to over $7 meant “more people earn at or below minimum wage.” Seems that changing the minimum wage has little real effect.

29

  1. 1%

  2. 8%

  3. 3%

30

Presumably pretty low, lets say 2%

You mean profit for the seller, or the total profit for everyone involved in manufacturing/wholesale, etc? I imagine the first number is just a few percent (lets say 4%), but that the second number would be considerably higher (lets say 30%).

Somewhere between 0 and 1%

31
  1. What percentage of workers in the US earn only minimum wage?

5% of legal, currently-working Americans, including kids that aren’t heads of household.

  1. As an overall average, what percentage of sales dollars are profits?

Assuming retail sales and not B2B, wholesale, services, heavy industry, etc., then 3%.

  1. What is the current inflation rate?

Oh, I’ll blow this one. I’ve been out of the country. We’re trying to prevent deflation, some CPI has come down, no social security cola, so I’ll guess 1%, assuming you mean consumer prices only. I’d venture higher for industry, lower for housing.

32

  1. 2-3%, I think.

  2. Depends on the industry. I think manufacturing (my field) averages around 3-5%, but others are higher so… 5-10%.

  3. Around 1%. I think there are deflationary hints that are scaring some economists.

33
  1. 3%
  2. 1.3%
  3. 1.3%

What do I win?

Regards,
Shodan

34
  1. 5%
  2. 8%
  3. 0%
35

Some Googling later -

[spoiler]What is the Current U.S. Inflation Rate? claims the current inflation rate as of August 2010 is 1.15%.

http://www.bls.gov/cps/minwage2007.htm has figures as of 2007.

Can’t find anything definitive about profit margins.[/spoiler]
Regards,
Shodan

36
  1. 5-10%
  2. 1-2%
  3. 1%? Normally 2-3%
37

Seems like a lot of people are harving a hard time finding an answer to this one. I’m going to give Bricker the benefit of the doubt and assume that he also couldn’t find the answer for his homework assignment. Therefore might I suggest that this question be a little more specific?

In my guess above, I pointed out that my answer was for consumer retail sales (and no, I don’t know that it’s a correct answer). An overall average of “sales dollars” can encompass a lot of things, or even involve multiple sales of one thing (manufacturer to national distributor is a sale, then to local distributor, then to retail store, then to consumer). And again, some things aren’t sold, but leased, licensed, or hired. And do we count services as a sale?

38

As I go back and recheck the thread for answers, I am surprised at so many people thought that such a high percentage make only minimum wage. I thought my 3% guess seemed high. (I believe it turned out it was). Every job my son had in high school paid at least 10% over minimum wage and these were sweeping up and taking out the trash type jobs. Even our file clerks that we get from the community college for part time work make $9.00 per hour vs the $7.25 (or 7.75?)

39
  1. 9%
  2. 7%
  3. 2.4%
40

The more I think about it, the more it occurs to me that we still don’t know the answer for #1. We know how many hourly workers made the minimum wage or less, but presumably there are also some salaried workers who did (though not as many).