A labor contract provides for a first-year wage of $15 per hour, and specifies that the real wage will rise by 2 percent in the second year of the contract. The CPI is 1.00 in the first year and 1.09 in the second year. What dollar wage must be paid in the second year?

A. $16.09
B. $15.30
C. $16.45
D. $16.68


Answer: D

Economics

You might also like to view...

What two things does the amount of property income a household earns depend upon?

What will be an ideal response?

Economics

The Doing Business reports are considered by many economists to have contributed to economic growth and poverty reduction. The effectiveness of the reports may be attributed to ________

A) their encouragement to governments to reduce impediments to business B) their encouragement to businesses to migrate to business-friendly locations C) their deepening of economists' understanding of economic growth D) their exposing of corrupt officials and practices

Economics

What are the conditions for long-run equilibrium?

What will be an ideal response?

Economics

In the calculation of the CPI, books are given greater weight than magazines if

a. consumers buy more books than magazines. b. the price of books is higher than the price of magazines. c. it costs more to produce books than it costs to produce magazines. d. books are more readily available than magazines to the typical consumer.

Economics