(Table 1: Econia's Consumer Price Index and Salary Data, 2008

question 77

Multiple Choice

(Table 1: Econia's Consumer Price Index and Salary Data, 2008 and 2018) Table 1 provides data on Econia's Consumer Price Index (CPI) and average salaries for two years. A newspaper headline states "Well-being of Econia's workers doubles over decade." Was this headline correct? $\begin{array}{l}\text { Table 1: Econia's Consumer Price Index and Salary Data, } 2008 \text { and } 2018\\\begin{array}{|l|l|l|}\hline &{\text { Consumer Price Index }} & {\begin{array}{c}\text { Average Salary (current U.S. } \\\text { dollars) }\end{array}} \\\hline 2008 & 140 & \$ 60,000 \\\hline 2018 & 200 & \$ 120,000 \\\hline\end{array}\end{array}$

• A) Yes; average salary doubled.
• B) Yes; average salary rose twice as fast as the price level.
• C) No; salaries adjusted for the price level did not double.
• D) No; real salaries rose twice as fast as prices.

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Definitions:

Interpersonal Power

The ability of an individual to influence the behavior or attitudes of another individual in a social interaction.

French and Raven

Two social psychologists who are best known for developing the theory of the five bases of social power, which include reward, coercive, legitimate, referent, and expert power.

Political Skill

The ability to understand and influence others in an organizational context, often to achieve personal or organizational objectives.

Organizations

Groups of people structured and managed to meet a need or to pursue collective goals on a continuing basis.