If Real Salaries Decrease but Nominal Salaries Do Not,this Means

question 122

Multiple Choice

If real salaries decrease but nominal salaries do not,this means that

• A) the purchasing power of money has increased.
• B) prices have not changed.
• C) prices have risen.
• D) prices have fallen.

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Definitions:

Stubborn

Showing determination not to change one's attitude or position on something, especially in spite of good arguments or reasons to do so.

Customary Pricing

Setting prices based on what is traditionally expected or accepted within the market or among competitors.

Cost-plus Pricing

An approach to pricing in which a sale price is established by adding a specific extra amount to the product's per-unit cost.

Target Profit Pricing

Setting a product price based on a predetermined profit objective, rather than market or competitive conditions.