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Unformatted text preview: asks what is the topgrossing movie of all time in the
United States. Do you know the
answer? As of this writing, it is
Titanic, which grossed $660 million
in the United States and $1.8 billion
worldwide. Some other movies that
make the 10 top-grossing movies in
the United States list include Star
Wars (1977), Shrek 2, E.T., and
A slight problem arises when we
realize that movies in the top 10 list
were released in different years. For
example, Titanic was released in
1997, Star Wars was released 20
years earlier in 1977, and E.T. was released in 1982. Now not only
were ticket prices different in these
different years, but the prices of
almost all goods and services were
different too. For example, the CPI
in 1977 was 58.5, but it was 94.3 in
1982, and 160.5 in 1997.
If we simply compare the gross
receipts for movies in different
years—without taking into account
that prices are different in different
years—we are making an inaccurate Who Are the Unemployed?
Look at Exhibit 11-11 on the next page,...
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This document was uploaded on 01/16/2014.
- Winter '14