Which of the Following Is Generally True of Nominal Wages

question 144

Multiple Choice

Which of the following is generally true of nominal wages?

• A)In the long run,nominal wages tend to equal real wages.
• B)Nominal wages are more flexible downward than upward.
• C)Nominal wages are more flexible than prices.
• D)Nominal wages tend to adjust slowly in the downward direction.
• E)Nominal wages do not rise during labor shortages.

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Definitions:

Self-Delusional Thought

A false belief or thought process maintained despite evidence or reality to the contrary, typically serving as a defense mechanism.

Primacy Effect

The tendency to remember information at the beginning of a list or sequence better than information in the middle or at the end.

Fundamental Attribution Error

A cognitive bias that involves overestimating the effect of personality or disposition and underestimating the effect of situational factors when interpreting the behaviors of others.

Defensive Attribution

A psychological process by which individuals tend to attribute more blame to victims and less to perpetrators when they see themselves as similar to the victim.