In the Spotlight on Small Business Box in the Chapter

question 115

True/False

In the Spotlight on Small Business box in the chapter, Copart has found a ready market for its salvaged cars in the United States but has been unable to find a market globally due to distribution problems.

---

Definitions:

Real Wage

The buying capacity of salaries once corrected for inflation, showing the amount of products and services that can be purchased.

Nominal Wage

The wage or salary paid to labor in current dollars, unadjusted for inflation, representing the face value of earned income.

Price Level

Refers to the average of all current prices for goods and services in an economy.

Real Wage

The purchasing power of wages, defined by how much goods and services the wages can buy, adjusting for the level of prices in an economy.