Explain the difference between nominal wages and real wages
What will be an ideal response?
Nominal wages are the actual wages earned by employees. Real wages are the wages paid to employees after being adjusted for changes in the price level.
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The Social Security tax (OASDI) is applied to every dollar of wages earned
Indicate whether the statement is true or false
Which of the following would most likely be the result if the government imposed regulations on monopolistically competitive firms?
a. The firms would take a loss. b. The firms would increase their profits. c. More firms would enter the market. d. More firms would expand production.
As the U.S. labor force grows and the nation’s capital stock is augmented by investment, the
A. price level will rise. B. aggregate supply curve shifts inward. C. aggregate supply curve shifts outward. D. aggregate supply curve becomes steeper.
Bonnie volunteers to help make floral arrangements at a flower shop. She is an example of
A) entrepreneurial ability. B) labor. C) physical capital. D) human capital.