Use the Table Below to Find the Real Wage in 2007

question 75

Multiple Choice

Use the table below to find the real wage in 2007 (in 2006 dollars) .
$\begin{array}{lcc}\frac{\text { Year }}{2006} & \frac{\text { Nominal Wage }(\$ / \text { hour }) }{\$ 12.50} & \frac{\text { CPI }}{155.0} \\ 2007 & \$ 13.00 & 160.0\end{array}$

• A) $8.06
• B) $8.13
• C) $8.39
• D) $13.00
• E) $7.81

Understand the conditions under which a buyer can revoke acceptance of goods.

Recognize the ability of parties in a sales contract to limit or exclude certain damages.

Identify the implications of not specifying a place of delivery in a sales contract.

Comprehend the obligations of a seller under the United Nations Convention on Contracts for the International Sale of Goods.

---

Definitions:

Consumption

The part of personal income that is spent on goods and services rather than saved, influencing economic activity and demand.

Savings

The portion of income not spent on current expenditures or taxes, which is set aside for future use or investment.

Autonomous Consumption

Spending that does not depend on current income levels, such as basic necessities, implying that this consumption occurs even in the absence of income.

Disposable Income

represents the amount of money that households have available for spending and saving after income taxes have been accounted for.