If the Nominal Wage Rises by 6 Percent and the Price

question 265

Multiple Choice

If the nominal wage rises by 6 percent and the price level falls by 2 percent, the real wage will

• A) be unaffected.
• B) rise by 4 percent.
• C) fall by 4 percent.
• D) rise by 8 percent.

---

Definitions:

Theory Z

A management philosophy which integrates Japanese and American business practices, emphasizing employee participation, job security, and company loyalty.

Quality Circles

Small groups of employees who regularly meet to discuss and propose solutions to workplace issues, aimed at improving performance and working conditions.

Human Relations Model

A management approach emphasizing the importance of interpersonal relationships and employee morale in achieving organizational objectives.

Social Planning Model

A strategic approach to addressing social issues and problems through organized, participatory planning processes.