Suppose You Received a 5 Percent Increase in Your Nominal

question 16

Multiple Choice

Suppose you received a 5 percent increase in your nominal wage. Over the year, inflation ran about 2 percent. Which of the following is true ?

• A) Your real wage increased.
• B) Your nominal wage decreased.
• C) Both your nominal and real wages decreased.
• D) Although your nominal wage rose, your real wage decreased.

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Definitions:

Growth Needs

Refers to the intrinsic desire for personal development, achievement, and self-actualization beyond basic material or survival needs.

Physiological Needs

The basic physical requirements for human survival, such as air, water, food, shelter, and sleep, which must be met to pursue higher-level needs.

Motivators

Factors that significantly contribute to enhancing employee satisfaction and motivation, leading to improved performance.

Controlled Motivation

Controlled motivation describes a type of motivation that is driven by external pressures or obligations rather than internal desires or interests.