Suppose a Union and a Firm Agree to Increase the Wage

question 36

Multiple Choice

Suppose a union and a firm agree to increase the wage rate by the same percentage as the increase in the Consumer Price Index.If the CPI increases by 5 percent, then the real income of workers will

• A)decrease by 5 percent, accounting for bias in the calculation of the CPI.
• B)increase by less than 5 percent, accounting for bias in the calculation of the CPI.
• C)increase by more than 5 percent, accounting for bias in the calculation of the CPI.
• D)increase by 5 percent.
• E)remain unchanged, accounting for bias in the calculation of the CPI.

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Definitions:

Reliability

The degree to which an assessment tool produces stable and consistent results across different occasions.

Standardization

The process of making something conform to a standard in order to ensure consistency and comparability.

Intelligence Testing

the assessment of an individual's range of cognitive abilities, aptitudes, and intellectual potential through various standardized tests.

Intellectual Disability

A term for significantly below-average intellectual functioning and adaptive behavior, evident before the age of 18.