The real wage
A) is the nominal wage divided by the price level.
B) automatically increases with the cost of living.
C) is the price level divided by the nominal wage.
D) is the nominal wage multiplied by the price level.
A
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Refer to Figure 11-13. The lines shown in the diagram are isocost lines. Which of the following shows a decrease in the price of capital while the price of labor remains unchanged?
A) the movement from BF to AF B) the movement from BF to BD C) the movement from AF to BF D) the movement from BF to CE
The oligopoly price will be greater than marginal cost but less than the monopoly price when
a. the oligopolists collude by jointly choosing a quantity to produce and maintaining their agreement. b. the oligopolists collude by jointly choosing a price to charge and maintaining their agreement. c. each oligopolist individually chooses a quantity to produce to maximize profit. d. each oligopolist's objective is minimization of average total cost, rather than maximization of profit.