Suppose a trade union and a firm agree to increase the wage rate by the same percentage as the increase in the Consumer Price Index. If the CPI increases by 5 percent, then the real income of workers will
A) increase by less than 5 percent, accounting for bias in the calculation of the CPI.
B) remain unchanged, accounting for bias in the calculation of the CPI.
C) increase by more than 5 percent, accounting for bias in the calculation of the CPI.
D) increase by 5 percent as well.
E) decrease by 5 percent, accounting for bias in the calculation of the CPI.
C) increase by more than 5 percent, accounting for bias in the calculation of the CPI.
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Which of the following is most likely to cause a rightward shift of the investment demand curve?
a. An increase in income b. A decrease in the market interest rate c. An improvement in business expectations d. An increase in the market rate of interest e. A decrease in income
The supply of labor to a particular job will be greater the
a. less the social status that is attached to the job b. less training is required to perform that job c. lower the fringe benefits are of the job d. less flexible the work schedules are in the job e. higher degree of personal risk involved in the job
The law of diminishing marginal utility exists for the first four units of a good if they have marginal utilities of:
A. 1, 2, 4, 8. B. 8, 4, 1, 2. C. 4, 8, 2, 1. D. 8, 4, 2, 1.
Sixty years after the signing of GATT and following eight completed round of trade negotiations,
A) trade barriers are no longer an issue. B) trade barriers have been successfully reduced. C) trade barrier have actually increased. D) there has been no real change in trade barrier.