Suppose You Received a 5 Percent Increase in Your Nominal

question 14

Multiple Choice

Suppose you received a 5 percent increase in your nominal wage.Over the year,inflation ran about 2 percent.Which of the following is true?

• A)Your real wage increased.
• B)Your nominal wage decreased.
• 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.

Apply graphical or corner-point methods to solve linear programming problems.

Evaluate the impact of changes in constraints on the solution of a linear programming problem.

Understand the significance of the feasible solution area in linear programming problems.

Understand the importance of only including relevant costs and benefits in project analysis.

---

Definitions:

Itemized Deduction

Deductions from income that taxpayers can claim for specific expenses, as opposed to taking a standard deduction.

Home Equity Indebtedness

Debt secured by a qualified residence that exceeds the acquisition indebtedness, with interest on such debt often being deductible under U.S. tax law.

Acquisition Indebtedness

Debt incurred in acquiring, constructing, or substantially improving a qualified residence of the taxpayer, and secured by the residence.

Qualified Residence Interest

Interest paid on a mortgage for a primary or secondary residence, which can be deductible for taxpayers who itemize deductions.