Recently a Labour Union Argued That the Standard of Living

question 69

Multiple Choice

Recently a labour union argued that the standard of living of its members was falling.A critic of the union argued that this could not possibly be true because the union had been acquiring significant increases in the nominal incomes of its members through collective bargaining.Is the critic correct?

• A)Yes, because when you have a large nominal income your standard of living automatically increases.
• B)No, because real income may fall if price increases are more proportionately than the increase in nominal income.
• C)No, because real income may fall if price increases are less proportionately than the increases in nominal income.
• D)Yes, because real income may fall if price increases are less proportionately than the increases in nominal income.

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Definitions:

Wind

Air in motion relative to the surface of the earth, playing a significant role in weather patterns and climate.

Air Pollution

The presence of harmful or excessive quantities of substances, including gases, particulates, and biological molecules in the atmosphere.

Pollutants

Substances that contaminate air, water, or soil, potentially causing harm to human health, the environment, or both.

Emissions

The release of substances, such as gases, liquids, or particulates, into the air or water, often associated with pollution from industrial activities or vehicles.