3.2.4 Practice: You Do the Math

The table below shows the annual income and hourly wage associated with two benchmark income levels. Use this information to help you answer the question below.

  Hourly Wage Annual Income2005 U.S. federal poverty line for a family of four $9.68 $19,3502005 U.S. median household income $23.16 $46,3261. For each of the professions in the left column, calculate the annual pay based on full-time, year-round employment consisting of 2,000 hours a year (40 hours per week for 50 weeks per year). Record your calculations under "Annual income" in the table. Then, find the difference between each annual wage figure and a) the poverty threshold and b) the median household income. If the difference is a negative number, record it as such. (30 points)

 Hourly wage

Annual income

Difference between annual wage and federal poverty line

Difference between annual wage and median household income

Federal minimum wage

$5.15  $10,300.00  -$9,050.00  -$36,026.00

Oregon's minimum wage

$7.50  $15,000.00  -$4,350.00  -$31,326.00

Marketing managers

$49.03  $98,060.00  $78,710.00  $51,734.00

Police officers $22.73  $45,460.00  $26,110.00  -$866.00Child-care workers

$8.73  $17,460.00 -$1,890.00 -$28,866.00