In which of the following situations would a worker have the greatest real income?
a. She receives a pay cut and her nominal wage falls by 5 percent, while the CPI falls by 20 percent.
b. She receives a pay cut and her nominal wage falls by 5 percent, while the CPI increases by 10 percent.
c. Her nominal wage remains the same, as does the CPI.
d. She receives a raise and her nominal wage increases by 5 percent, while the CPI increases by 10 percent.
e. She receives a raise and her salary increases by 5 percent, while the CPI falls by 5 percent.
A
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For a perfectly competitive firm, marginal revenue equals average revenue because the
A. firm’s supply curve is horizontal. B. industry’s demand curve is horizontal. C. firm’s demand curve is horizontal. D. industry’s supply curve is horizontal.
Suppose that 1982 is the base year for the Consumer Price Index (CPI) and in 2019 the CPI is 270. What does this "270" mean?
a. What cost $100 in 1982 on average cost 270 times as much in 2019. b. What cost $100 in 1982 on average cost $270 in 2019. c. What cost $100 in 1982 on average cost 0.27 times as much in 2019. d. What cost $100 in 1982 on average cost $27 more in 2019
Which of the following is NOT part of the "four-legged stool" of retirement income?
A. Individual savings B. Employer retirement plans C. Social Security D. Full-time work
The minimum point of a U-shaped curve
A) is a point where the variable is neither increasing nor decreasing. B) has a slope equal to zero. C) has the maximum slope possible. D) Both answers A and B are correct. E) Both answers A and C are correct.