In Las Vegas,the Cost of Living Index Is 110,and in San

question 151

Multiple Choice

In Las Vegas,the cost of living index is 110,and in San Francisco,it is 170.You work in Las Vegas currently and your salary is $57,000.You are offered a promotion and pay raise of $70,000 to move to San Francisco.If you take the promotion

• A) your nominal wage and your real wage have increased.
• B) your nominal wage increased but your real wage has decreased.
• C) your nominal wage decreased but your real wage has increased.
• D) both your nominal and real wage have decreased.
• E) your real wage remained constant even though your nominal wage rose.

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Independent Agency

A government body that operates independently of the executive branch and is tasked with regulating certain aspects of the economy or society.

Mediator

A neutral third party who assists in negotiations and conflict resolution between disputing parties.

Interest Group

An organization of people who share common goals and unite to influence public policy and opinion.

Federal Executive Agency

An administrative agency of the federal government of the United States, acting under the direct authority of the President or the U.S. cabinet.