Which of the Following Is True About Real and Nominal

question 35

Multiple Choice

Which of the following is true about real and nominal wages?

• A)In periods of low inflation,real wages are constant and nominal wages decline.
• B)If the price level is high,real wages will fall.
• C)If the price level is high,nominal wages will fall.
• D)If there is inflation,real wages will change if nominal wages are constant.
• E)If there is a constant inflation rate,real wages will not change unless nominal wages do.

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Definitions:

Net Operating Income

A measure of a company's profitability, calculated by subtracting operating expenses from gross profit.

Variable Costing

A costing method that includes only variable production costs (material, labor, and overhead) in the cost of manufactured goods, treating fixed overhead costs as period expenses.

Unit Product Cost

The total cost to produce one unit of product, including direct materials, labor, and allocated overhead.

Net Operating Income

The profit calculated after all operating expenses are subtracted from total revenue but before interest and taxes are deducted.