A Labor Contract Provides for a First-Year Wage of $10

question 107

Multiple Choice

A labor contract provides for a first-year wage of $10 per hour, and specifies that the real wage will rise by 3 percent in the second year of the contract and by another 3 percent in the third year. The CPI is 1.00 in the first year, 1.07 in the second year, and 1.15 in the third year. What dollar wage must be paid in the third year?

• A)$10.61
• B)$11.15
• C)$12.20
• D)$12.31

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Definitions:

Hypothalamus

A region of the brain that controls many bodily functions, including hunger, thirst, temperature regulation, and the release of many hormones.

Anterior Pituitary

Portion of the pituitary gland that is controlled by the hypothalamus and produces six types of hormones, some of which control other endocrine glands.

Arterial Duct

A blood vessel in a fetus that connects the pulmonary artery to the descending aorta, allowing most of the blood to bypass the fetus's developing lungs.

Pulmonary Trunk

The major artery that exits the heart, carrying deoxygenated blood from the right ventricle to the lungs for oxygenation.