If a worker receives 6 percent higher nominal wages over a year in which inflation is 2 percent, the worker's real wages have
A) risen by 8 percent.
B) risen by 4 percent.
C) risen by 3 percent.
D) fallen by 3 percent.
E) fallen by 4 percent.
B
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Which of the following is not a reason for regulation of U.S. financial markets?
A) Protection of individual investors B) Disclosure of information about securities is the best way to safeguard investors C) Full disclosure broadens investor's participation in the financial markets D) The operation of financial markets requires government regulation if they are to be efficient in channeling funds from savers to borrowers.
For a profit-maximizing monopolist
A) P > MC. B) P = MC. C) P = MR. D) P = ATC.
When an American hires a Mexican worker to perform a job, we know that
a. Both the American and the Mexican would be better off if they had dealt with someone in their own country instead. b. The American is made better off by exploiting the Mexican worker, who is worse off. c. Both the American and the Mexican are better off than they would be if they had not made this voluntary exchange. d. The Mexican worker is better off, but the American employer is worse off because he should have hired an American worker.
Which of the following best describes exchanges rates that are determined by the demand and supply foreign exchange in the absence of official intervention?
A. fixed exchange rates B. the gold standard C. the Bretton Woods system D. floating exchange rates