An Assistant Manager at a Restaurant Gets a $100 a Month

question 29

Multiple Choice

An assistant manager at a restaurant gets a $100 a month raise.He figures that with his new monthly salary he cannot buy as many goods and services as he could buy last year.

• A)His real and nominal salary have risen.
• B)His real and nominal salary have fallen.
• C)His real salary has risen and his nominal salary has fallen.
• D)His real salary has fallen and his nominal salary has risen.

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Definitions:

Deductions

Expenses or specific amounts that can be subtracted from one's gross income to reduce the taxable income.

Rate Structure

The system or plan for pricing services, often used in reference to utilities like electricity, water, and telecommunications, outlining how rates vary based on usage levels or time of use.

Tax Base

The measure or value upon which a tax is levied.

Incidence

In economics, the allocation or distribution of a tax's economic burden between buyers and sellers.