A Labour Contract Provides for a First-Year Wage of $15

question 61

Multiple Choice

A labour contract provides for a first-year wage of $15 per hour,and specifies that the real wage will rise by 2% in the second year of the contract.The consumer price index (CPI) is 100 in the first year and 109 in the second year.What dollar wage must be paid in the second year?

• A) $15.00 per hour.
• B) $15.30 per hour.
• C) $16.09 per hour.
• D) $16.68 per hour.
• E) $17.09 per hour.

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Definitions:

Agricultural Products

Goods derived from farming and agriculture, including crops, livestock, and other primary products.

Environmentalists

Individuals or groups advocating for the protection of the environment against pollution and degradation.

Price Supports

Government interventions to maintain the market price of a commodity at a certain level by purchasing excess supply, providing subsidies, or imposing import restrictions.

Subsidies

Financial aid provided by the government to support a specific economic activity or sector.