Your Nominal Wage Increases from $12 Per Hour to $13

question 95

Multiple Choice

Your nominal wage increases from $12 per hour to $13 per hour.At the same time,the price level increases from 140 to 147.As a result,

• A)The number of dollars you receive increases and the purchasing power of the dollars you receive increases.
• B)The number of dollars you receive increases and the purchasing power of the dollars you receive decreases.
• C)The number of dollars you receive decreases and the purchasing power of the dollars you receive increases.
• D)The number of dollars you receive decreases and the purchasing power of the dollars you receive decreases.

---

Definitions:

Overhead Cost

Indirect costs related to the overall operations of a company that cannot be directly attributed to a specific product or service.

Product Line

A group of related products manufactured or sold by a business.

Material Handling

The activities involved in moving, storing, controlling, and protecting materials and products throughout the manufacturing, distribution, consumption, and disposal processes.

Storage Costs

Storage costs are expenses associated with warehousing and holding inventory, including rent, utilities, and other maintenance expenses for storage facilities.