Suppose an Employer and Its Employees Enter into a Wage

question 23

Multiple Choice

Suppose an employer and its employees enter into a wage contract specifying a wage increase of 2%.But suppose the price level rises by 3% over the course of the contract.In this case,

• A)the employees' purchasing power will rise.
• B)the employees' purchasing power will fall.
• C)the employer will experience a greater fall in purchasing power than would have occurred if the price level had held steady.
• D)both employer and employees will benefit from increased purchasing power.
• E)both employer and employees will experience a loss of purchasing power.

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Definitions:

Diversity Awareness Training

An educational program designed to increase participants' understanding, appreciation, and respect for diversity within the workplace or social environments.

Deep-Rooted Prejudice

Long-standing biases or irrational judgments against individuals or groups, often entrenched within societal or individual belief systems.

Ingrained Stereotypes

Deeply embedded preconceived and oversimplified images or ideas of particular types of people or things.

Tacit Knowledge

Knowledge that is difficult to transfer to another person by writing it down or verbalizing it, often gained through personal experience.