Define the nominal wage rate and the real wage rate. Can the nominal wage rate increase faster than the real wage rate?
What will be an ideal response?
The nominal wage rate is the wage rate measured in current dollars and the real wage rate is the wage rate measured in constant dollars. More generally, the nominal wage rate is the number of dollars received for an hour's work and the real wage rate is the number of goods and services that can be purchased with an hour's work. The nominal wage rate increases faster than the real wage rate when prices are increasing, that is, when inflation occurs.
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A supply curve shows
A) the marginal cost of producing one more unit of a good or service. B) the marginal benefit from buying one more unit of a good or service. C) the quantities sold at different prices. D) the total cost of producing different quantities of a good or service.
Which of the following is a fixed cost of preparing meals?
a. dishwasher detergent b. chicken c. salad d. a microwave oven e. electricity