If Inflation Is 6 Percent and a Worker Receives a 4

question 2

Multiple Choice

If inflation is 6 percent and a worker receives a 4 percent wage increase, then the worker's real wage:

• A)increased 4 percent.
• B)increased 2 percent.
• C)decreased 2 percent.
• D)decreased 6 percent.

---

Definitions:

Common Fixed Expenses

Expenses that do not vary with the level of production or sales, and are shared by more than one segment or department within an organization.

Net Operating Income

Income from operations before interest and taxes, reflecting the profitability of a company's core business activities.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted.

Segment Margin

The amount of profit or loss generated by a specific segment of a business, after deducting direct and allocated expenses attributable to that segment.