Suppose Workers Are Willing to Work More Hours When the Nominal

question 9

Multiple Choice

Suppose workers are willing to work more hours when the nominal wage increases.Which of the following characterizes the economic rationality of their decision?  

• A) The decision is NOT economically rational, because it should be based on the real wage only. 
• B) The decision could be rational if workers thought that the inflation rate would fall in the future. 
• C) The decision could be rational if workers thought that the real wage had fallen. 
• D) The decision could be rational if workers thought that the nominal wage and the real wage were equal.

---

Definitions:

Point-of-Purchase Display

A specialized form of sales promotion located near, on, or next to a checkout counter (the point of purchase) designed to attract customer attention and stimulate sales.

News Release

An official statement issued to newspapers and other media for the purpose of providing information, an official statement, or making an announcement.

Media

The various means of communication, such as television, radio, newspapers, and the internet, that reach or influence people widely.

Story Idea

A concept or outline that lays the groundwork for a narrative in literature, journalism, film, or other creative fields.