Suppose You Received a 4 Percent Increase in Your Nominal

question 58

Multiple Choice

Suppose you received a 4 percent increase in your nominal wage.Over the year,inflation runs about 7 percent.Which of the following is true?

• A)Your real wage increased.
• B)Both the nominal and real wages increased.
• C)Both your nominal and real wages decreased.
• D)Although your nominal wage fell,your real wage increased.
• E)Although your nominal wage rose,your real wage decreased.

Understand the impact of the second industrial revolution on America's economy and workforce.

Analyze how the expansion of railroads and new economic policies contributed to explosive growth during the Gilded Age.

Understand the concept of implicit costs and their relevance to business economics.

Calculate and distinguish between accounting profit and economic profit.

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Definitions:

Managerial Efficiencies

Refers to the effectiveness and productivity with which managers and administrative leaders run a company, aiming to maximize output with minimal wasted effort or expense.

Target

In a business context, a target can refer to a specific goal or benchmark aimed to be achieved, such as sales targets or performance targets.

Individual Identity

The distinctive characteristics or personality that makes a person unique from others.

Typical Consolidation

The process of combining multiple financial statements from different entities into one aggregate financial statement.