Assume That Ernesto Earned a Nominal Wage Rate of $15

question 89

Multiple Choice

Assume that Ernesto earned a nominal wage rate of $15 per hour in 2001,the base year for the CPI.If the CPI in 2002 was 102.6 and his nominal wage rate was $16 per hour,what was his real wage rate in 2001?

• A) $14.62
• B) $15.00
• C) $15.59
• D) $16.00
• E) His real wage for 2001 cannot be determined with the information given.

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Definitions:

Cost of Services

The total expense incurred to provide services, including labor, materials, and overhead.

Work in Process

Inventory that includes goods partially completed; costs of raw materials, labor, and overhead are accumulated in this account.

Inadequately Trained Employees

Workers who have not received sufficient training to perform their jobs effectively, potentially impacting productivity and quality.

Poor Quality Materials

Materials that do not meet the required standards for production or manufacturing, possibly leading to product defects.