Your Boss Gives You an Increase in the Number of Dollars

question 185

Multiple Choice

Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes

• A) your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage also increased.
• B) your nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage decreased.
• C) your real wage increase. If your real wage rose by a greater percentage than the price level, then your nominal wage also increased.
• D) your real wage decrease. If your real wage rose by a greater percentage than the price level, then your nominal wage decreased.

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Definitions:

M

Typically represents the mean or average in statistical contexts.

Arithmetic Mean

A measure of central tendency calculated by summing all the scores and dividing by the number of scores. See Mean.

Mode

The number that occurs most often in a collection of data.

Weighted Mean

An average in which each data point contributes to the final mean with a weight that reflects its importance or frequency.