In 1993, the base year, you were earning $400/week. Your wages rose to $550 in 2001, the current year, when the Consumer Price Index stood at 137.5. 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.
C. They remained the same.
You might also like to view...
One of the basic trade-offs inherent in designing a tax system is between:
A. surplus and revenues. B. supply and demand. C. efficiency and equity. D. price and quantity.
Foreign portfolio investment is sometimes called hot money because:
A. it can be withdrawn from a country very quickly. B. it is very difficult to trace. C. it is often invested in the assets which yield the highest returns in the world. D. earnings often go untaxed by the home government.
The cost of owning a government bond is ____________, and the benefit of owning one is ______________.
A. that it is as liquid as cash; interest earned B. interest earned; that it is not very liquid C. that it is highly liquid;interest charged D. interest charged; that it is not very liquid
Suppose that a consumer is currently at an optimum when consuming goods A and B. Which of the following must be TRUE?
A. The marginal utility to price ratio of A is equal to the marginal utility to price ratio of B. B. The price of A is equal to the price of B. C. The marginal utility of A is equal to the marginal utility of B. D. The total utility from A is equal to the total utility from B.