Table 5-7 Shows a Mechanic's Hourly Wage and the Respective

question 5

Multiple Choice

Table 5-7 shows a mechanic's hourly wage and the respective price indexes for the years 1975 and 2005. Use the table to answer questions .
Table 5-7

-Refer to Table 5-7. Which of the following statements is true?

• A) Although the nominal wage increased, the real wage fell.
• B) Both the nominal and the real wage rose.
• C) Based on the values of the price index, real hourly wage doubled over the 30-year period.
• D) The purchasing power of the mechanic has slowly diminished over the years.

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Definitions:

Closed-Loop Supply Chain

A supply chain model that integrates forward logistics with reverse logistics, focusing on recycling and reusing materials to minimize waste and improve sustainability.

Work in Process Inventory

Work in process inventory consists of goods and materials that have started the production process but are not yet completed at a specific point in time.

Cost of Goods Sold

The direct costs attributable to the production of goods sold in a company, including material and labor costs.

Work in Process Inventory

The value of the goods that are partially completed by a company but not yet ready for sale.