Which of the following is an example of a real variable?

Question

Madeline is a bank teller. In 1995, Madeline earned $12 per hour. Suppose Madeline spends all her income on burritos or colas. In 1995, a burrito sold for $2 and a cola sold for $1. In 2005, Madeline--still a bank teller--earned $24 per hour, a burrito cost $6, and a cola cost $3.

4.1. Which of the following is an example of a real variable?

I. The price of a burrito is two colas in 1995.

II. The price of a cola is $3 in 2005.

III. Madeline's wage is four burritos per hour in 2005.

IV. Madeline's wage is $12 per hour in 1995.

A. II, III, and IV only

B. I and III only

C. III and IV only

D. I, II, III, and IV

E. I only

F. II and IV only

Answer 1

The answer is "E - I only". Because in real variables we cant consider the money, we just take level of out put or variable affecting the output level.

I hope it will work for you.

Answer 2

D. I, II, III, and IV

Because all answers contain base year - so all are real variables relative to the same base year.