In 1992, the base year, you were earning $500/week. Your wages rose to $900 in 2001, the current year, when the Consumer Price Index stood at 150. What statement can you make about what happened to your real wages over this period?
A. They rose.
B. They fell.
C. They remained the same.
D. There is not enough information to determine whether they rose, fell, or remained the same.
A. They rose.
You might also like to view...
Which of the following is an argument in favor of a competitive market structure rather than monopoly?
A. Economies of scale allow a single firm to produce at lower cost than in a competitive market, ceteris paribus. B. The lure of monopoly power provides a greater incentive for invention and innovation. C. Monopolies produce less goods at a higher price than competitive markets, ceteris paribus. D. Monopolies have greater ability to pursue research and design.
Which of the following is NOT a situation providing a potential advantage for Mexico that makes it competitive compared to China in trade with the United States?
A) The product line requires quick turn-around time from or to delivery. B) The need to manage a just-in-time inventory system C) Wages are low and the production process is labor intensive. D) The product is heavy and bulky relative to its final value.
You place $100 in a bank account that pays 8%. If you remove the interest you receive each year you can turn your stock into a flow of
A) $108 per year. B) $100 per year. C) $80 per year. D) $8 per year.
Proportional income taxation is distorting because
A) people do all they can to avoid paying taxes. B) the competitive equilibrium is not Pareto optimal. C) firms do all they can to avoid paying taxes. D) the government budget constraint does not hold.