Table 13-18 -Refer to Table 13-18

question 39

Multiple Choice

Table 13-18
$$\begin{array} { | c | c | c | } \hline \text { Year } & \begin{array} { c } \text { Nominal Average Hourly } \\\text { Earnings }\end{array} & \begin{array} { c } \text { CPI } \\( \mathbf { 1 9 8 2 - 1 9 8 4 } = \mathbf { 1 0 0 } ) \end{array} \\\hline 2011 & \$ 10 & 100 \\\hline 2012 & 10 & 105 \\\hline 2013 & 12 & 117 \\\hline\end{array}$$
-Refer to Table 13-18.Looking at the table above,what is the rate of growth of real average hourly earnings from 2012 to 2013?

• A)7.7%
• B)6.25%
• C)4%
• D)-4%

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Definitions:

Deadweight Loss

A reduction in economic productivity occurring when there is no achievement of equilibrium for a good or service.

Marginal Revenue

The enhanced income derived from peddling an additional unit of a product or service.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a good or service, a critical factor in economic decision-making.

Predatory Pricing

Practice of pricing to drive current competitors out of business and to discourage new entrants in a market so that a firm can enjoy higher future profits.