The government uses the buying power of wages rather than face value or nominal value in reporting changes in "real wages" in the economy.
Answer the following statement true (T) or false (F)
True
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Refer to the scenario above. Which of the following problems arises in this scenario?
A) Low transaction costs B) The free-rider problem C) Moral hazard D) A negative externality
The price index was 136 in one year and 142 in the next year. What was the inflation rate between the two years?
a. 1.04 percent b. 4.41 percent c. 6.00 percent d. 42.00 percent
If a cartel is successful
A. the firms will act like a monopoly. B. the firms will lose profits in a perfectly competitive market. C. the consumers will pay lower prices. D. the consumers will have more goods and services to choose from.
Which of the following does not contribute to an increase in productivity?
A. Research and development. B. Income transfers. C. Capital investment. D. Improvements in the quality of labor.