If Your Real Wage Rose but Your Nominal Wage Fell,this

question 142

Multiple Choice

If your real wage rose but your nominal wage fell,this would imply that

• A) inflation is positive but less than the rate of increase in your wage.
• B) inflation has occurred.
• C) your boss took some of your wages illegally.
• D) the overall price level has fallen more than your nominal wage.
• E) housing prices have fallen,and because you own a house,it reduces the value of your real wage.

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Definitions:

Allocative Efficiency

A state in which resources are allocated in a way that maximizes the net benefit to society or achieves the desired distribution among competing uses.

Productive Efficiency

Productive efficiency occurs when an economy or entity produces goods and services at the lowest possible cost, utilizing all available resources without waste.

MB = MC

The principle that optimal decision-making is achieved when the marginal benefit equals the marginal cost.

Unintended Consequences

Outcomes of a policy or action that were not foreseen or intended, often contrary to the original objectives.